In light of the Board’s concerns and the lack of compelling value in their non-binding proposal, the Board has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade.

“Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the Board determined that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s, Inc. shareholders,” said Jeff Gennette, Macy’s Chairman and CEO. 

In a letter to Arkhouse and Brigade Capital, the company noted

“As an initial matter, the proposed financing plan remains entirely uncommitted, and your “highly confident letter” is subject to numerous non-standard preconditions. Even were it to be less conditional, we have significant concerns about the viability of the structure of your financing plan.”

“We believe that this quantum of indebtedness, as well as your reliance on a large amount of payment-in-kind securities, make it highly unlikely that your proposed financing structure could be successfully executed.”

Macy’s is currently not engaged in any sales negotiations with external parties, and no other unexpected bidders align with the company’s criteria for a potential deal, Reuters noted, citing people close to the matter. 

Insiders reveal that Macy’s is seeking a prospective buyer with strong, committed financing and a successful history of executing retail sector buyouts.

Additionally, the company announced the closure of five Macy’s stores out of its 560 locations.

Price Action: M shares are up 3.78% at $18.30 on the last check Monday.

Photo via Wikimedia Commons