Macy's Reportedly In The Shopping List Of This PE Firm; Stock Jumps

Macy’s Inc M shares are trading higher Thursday morning.

Macy’s reportedly faces potential interest from private equity firm Sycamore Partners, which is considering a bid despite the firm’s recent rejection of another unsolicited offer, The New York Post reported.

Sycamore Partners, known for acquisitions like Ann Taylor and Talbots, has reportedly engaged in discussions with Macy’s, the owner of Bloomingdale’s, since late December, the report read.

Last week, the company was in the headlines for informing its employees about the decision to reduce 13% of its corporate workforce.

Related: Macy’s Unveils Streamlined Strategy With Massive Lay Offs And Store Closures: Report

The reductions reportedly account for approximately 2,350 positions, constituting around 3.5% of the company’s total workforce, encompassing Bloomingdale’s and Bluemercury subsidiaries.

During the initial stages of the pandemic, Sycamore Partners came close to acquiring Victorias Secret & Co. VSCO but eventually withdrew from the deal, The New York Post added.

Earlier this month, Macy’s confirmed receiving an unsolicited, non-binding proposal from Arkhouse Management Co LP and Brigade Capital Management LP to acquire the company at $21.00 per share.

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. 

Read Next: Department Store Chain Macy’s Rejects $5.8B Takeover Proposal Bid Over Financing Concerns

Price Action: M shares are trading higher by 4.27% to $18.92 on the last check Thursday.

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