Macy's Ends Talks With Investment Firms
Macy’s has ended months-long discussions with two investment firms over the company’s future with the retailer now focusing on implementing its “A Bold New Chapter” strategy.
The venerable department store’s board of directors unanimously determined that discussions with Arkhouse Management Co. LP and Brigade Capital Management, LP failed to lead to an actional proposal with certainty of financing at a compelling value.
“After careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process,” said Paul Verga, lead independent director of Macy’s. “The Board fully supports A Bold New Chapter strategy, and we believe it provides the best opportunity for value creation.”
According to Macy’s officials, the A Bold New Chapter strategy is gaining traction across all three of its strategic pillars – strengthening the Macy’s nameplate, accelerating luxury growth, and simplifying and modernizing end-to-end operations.
The company said it has seen early signs of wins, supported by a steady pace of omnichannel initiatives being developed and capital-light investments focused on better-serving customers. Additional details on the strategy will be shared during Macy’s second-quarter conference call later this month.
“Our team continues to be singularly focused on creating value for our shareholders,” said Tony Spring, chairman and CEO of Macy’s. “While it remains early days, we are pleased that our initiatives have gained traction, reinforcing our belief that the company can return to sustainable, profitable growth, accelerate free cash flow generation, and unlock shareholder value.”
