Macy’s has called off buyout talks with an investor group led by Arkhouse Management and Brigade Capital. The group had offered to acquire the department store chain for $6.9 billion. The company cited a lack of “compelling value” and uncertainty regarding financing as reasons for terminating the discussions.
The investor group had revised its offer twice, reaching $24.80 per share, a 43% premium to Macy’s stock price when the bid emerged. Despite this, the deal ultimately fell apart.
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Macy’s now plans to focus on its turnaround strategy, led by CEO Tony Spring. The plan includes job cuts, store closures, and an emphasis on its luxury brands, Bloomingdale’s and Bluemercury.
The news sent Macy’s shares down 15%, reflecting investor disappointment in the failed buyout. While the investor group could potentially make another offer, a hostile takeover seems unlikely given the cost and uncertainty involved.