Arkhouse Management, a real-estate-focused investing firm, said on Sunday it and Brigade Capital Management have raised their offer for Macy’s after the department store chain rebuffed their prior proposal as too low.
The firms are actually offering to acquire Macy’s stock they don’t already own for $24 per share, about 14% greater than its previous offer of $21 per share.
The brand new offer for the corporate represents a premium of about 33% to its last close on Friday at $18.01 and values the corporate at $6.6 billion.
“We proceed to offer the corporate a pretty alternative solution through a sale of the corporate at a considerable premium. This might provide Macy’s stockholders with significant value and immediate liquidity,” Arkhouse said.
![macy's](https://nypost.com/wp-content/uploads/sites/2/2024/03/people-walk-past-macys-store-75179800.jpg?w=1024)
“The Macy’s Inc Board will fastidiously review and evaluate the newest proposal,” Macy’s said in a separate statement.
The 2 investment firms had submitted a proposal in December last 12 months to acquire the shares of Macy’s they don’t already own for $21 a share however the offer was rejected by the department store operator due to concerns over the deal’s financing and valuation.
Like other legacy department store operators, Macy’s has struggled to compete against younger, online competitors or peers with smaller brick-and-mortar footprints.
This has given Arkhouse and Brigade a gap to put pressure on Macy’s to explore a sale.
Macy’s can also be facing a board challenge from Arkhouse Management after the investment firm nominated nine director candidates including executives with retail, real estate and capital markets experience, to the department store’s 14-member board last month.