Arkhouse Management and its partner Brigade Capital Management on Dec. 1 made a $5.8 billion proposal to take department store chain Macy’s private, Arkhouse confirmed on Sunday.

Arkhouse Management, a real-estate-focused investing firm, and Brigade Capital Management, a global asset manager, submitted a proposal to acquire the Macy’s stock they don’t already own for $21 a share, Arkhouse said in a statement.

The investor group sees “the potential for a meaningful increase to the original proposal if we are granted access to the necessary due diligence,” it said.

Macy’s did not respond immediately to a Reuters request for comment.

Reuters earlier reported that an investor group led by Arkhouse had submitted a proposal to take Macy’s private for $21 per share.

The Arkhouse and Brigade Capital Management-led investor group has a “significant stake in Macy’s through Arkhouse-managed funds,” Arkhouse said.

It said the two firms have “engaged privately” with Macy’s regarding the deal in recent weeks.

“We encourage the Company to respond to us this week, as it indicated, without further delaying substantive discussions,” Arkhouse said in its statement.

Arkhouse said that investment bank Jefferies, which is acting as the buyout group’s financial adviser, “has provided a highly confident letter supporting our ability to raise the necessary funds for the transaction.”

Macy’s last week said it is cutting 2,350 jobs and closing five stores at it aims to streamline operations.

The department store operator in November reported quarterly profits that crushed analysts’ estimates on lower inventories and strong demand for beauty products, signaling that attempts to trim inventory from 2022 highs were finally working.

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