Macy’s ends talks with investment firms that offered $6.9 billion for struggling retailer

Macy’s is ending talks with Arkhouse Management and Brigade Capital Management, saying a revised offer to take the department store private remains a risky proposition.

“We concluded that Arkhouse and Brigade’s proposal lacks financing certainty and does not offer compelling value,” Paul Varga, Macy’s lead independent director, said in a statement.

Arkhouse and Brigade did not immediately respond to requests for comment. The two investment firms offered to buy Macy’s for $5.8 billion in December before ultimately increase its offer to $6.9 billion.

Macy’s shares were down more than 14% in early trading. The retailer will now focus on driving the economic recovery on its own, Macy’s said in a news release.

“While it is still early, we are pleased that our initiatives have gained momentum, reinforcing our belief that the company can return to sustainable, profitable growth,” CEO Tony Spring, who took over as chief executive in February, said in a statement.

Macy’s, which announced earlier this year that it plans to close 150 underperforming stores and laying off more than 2,000 workers, is struggling to spur growth as high inflation and higher interest rates constrain spending.

Macy’s expects fiscal 2024 revenue to be between $22.3 billion and $22.9 billion, down from $23.09 billion in 2023.