Macy’s CEO Tony Spring will officially grab the reins on Sunday because the storied retailer faces slowing sales growth and takeover threats.
Spring, 58, who has climbed the ladder at high-end sister company Bloomingdales, has been Macy’s CEO-elect since last March — when Jeff Gennette announced plans to retire.
“I’m excited to tackle the role of CEO of Macy’s, Inc. and to use my over three many years of experience with our nameplates to construct on this strong foundation and lead our company forward,” Spring said in a press release.
He’s stepping up at a critical time. The corporate announced plans to slash 2,300 corporate jobs, or 13% of its corporate workforce, and can close five mall-based anchor stores – out of 722 within the US – as sales growth and customer traffic each drop off.
More concerning are recent overtures from two sizeable investors, Arkhouse Management and Brigade Capital Management, who made a $5.8 billion bid to take Macy’s private last December.
Macy’s rejected the offer last month.
One other private equity firm, Sycamore Partners, is exploring a possible acquisition of the New York-based company, as The Post reported.
Macy’s declined to comment, as did Sycamore, which owns quite a few apparel brands including The Limited, Talbots, Ann Taylor and the southern department store chain Belk.
Macy’s worthwhile real estate, which incorporates its massive flagship store in Herald Square, has ignited several other takeover attempts lately, including from Hudson’s Bay Co., which owns rival Saks Fifth Avenue.
Real estate investors, Arkhouse and Brigade have threatened to take their offer on to shareholders.
One among Gennette’s last tasks was to inform tell Arkhouse and Brigade that Macy’s board has concerns about their ability to provide you with the money to finance the deal.
Gennette, 62, spent seven years on the helm and 4 many years at the corporate.
Within the last quarter, Macy’s sales dropped 7.1% to $4.9 billion in comparison with a 12 months ago, and comparable store sales fell 6.7%. At Bloomingdale’s, comparable store sales declined 4.4% within the quarter and the corporate’s digital sales fell by 7%.