(Washington) A group of investors wants to buy the famous American department store chain Macy’s, which has been in financial difficulties for years, for $5.8 billion, reports Sunday. Wall Street Journal.
“Arkhouse Management, a real estate-focused investment firm, and Brigade Capital Management, a global asset manager, submitted the 1er December a proposal to acquire the Macy’s shares that they do not yet own for $21 per share,” writes the financial daily, citing sources familiar with the matter.
Contacted by AFP, an Arkhouse manager declined to comment. Brigade Capital Management did not respond.
Macy’s also declined to comment.
“The group already holds a significant position in Macy’s via funds managed by Arkhouse,” further specifies the Wall Street Journal.
“He discussed the proposal with Macy’s, whose board of directors then met to discuss the offer. We do not clearly know how the brand perceives the proposal,” it is further indicated.
Macy’s also owns the Bloomingdale’s and Bluemercury brands.
The iconic department store chain has, like its competitors, been in difficulty for years, hit hard by online sales, a situation further aggravated by the COVID-19 crisis.
Department store chains, which once attracted consumers to giant shopping centers, have seen their results plummet for years and are forced to reduce their scope.
The group of investors also “indicated that it would be willing to increase its offer subject to due diligence. An investment bank provided a letter confirming the group’s ability to raise the financing necessary to cross the finish line,” the daily also believes.
At 3e quarter 2023, Macy’s profit was more than halved, to 43 million dollars, compared to 108 million over the period in 2022. Turnover fell by 7%, to 4.9 billion dollars.