Early last week, Macy’s Board of Directors turned down a $6.9 billion buyout offer from two large firms. Additionally, they have terminated further negotiations. This is an interesting development considering the department store chain’s struggling sales. Nonetheless, the company seems firm in its decision… 

Amid Macy’s announcement that it was closing stores to go high-end, it was approached with a buyout offer. 

Two investment firms partnered to purchase the ailing company — Arkhouse Management and Brigade Capital Management. 

Arkhouse is an established real estate firm and Brigade is renowned for global asset management. Earlier this month, the pair raised their offer to buy Macy’s for the second time to $24.80 per share. 

However, this only resulted in the department chain voting to not pursue the deal after seven months of discussion. 

But, why? 

The Decision to Shut Down Macy’s Buyout was Unanimous 

Macy’s told The Wall Street Journal that the Board all voted to end negotiations. 

Representatives of the brand cited their reason was that the buyout was “not in the best interests of shareholders.” Similarly, Macy’s was uncertain that Arkhouse and Brigade would be able to finance the deal. 

According to the WSJ, those close to the situation also believe the change would distract from its turnaround strategy. 

Whether it would have or not, now we’ll never know. 

Nevertheless, it appears that Macy’s believes in their leadership and strategy to make it back on top. 

In this retail apocalypse, that kind of confidence is admirable but only the coming months will reveal if it will pay off…

Be Great,

GCTV Staff

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