(Washington) The group of investors who had tried for the first time, at the beginning of December, to buy the famous American department store chain Macy’s, in financial difficulty for several years, has increased its offer to convince shareholders, he said. announced Sunday in a press release.
Arkhouse Management and Brigade Capital Management have decided to increase their offer, which was then $5.8 billion, by almost an additional billion dollars, now offering $24 per share, compared to $21 three years ago. month.
This would bring the operation to $6.6 billion.
The new offer represents “a premium of 33.3% compared to the company’s closing price on 1er March”, specify the two funds in their joint press release.
They also announced that they would provide additional information on the operation, notably the fact that two other funds, Fortress Investment and One Investment Management, were participating in it by providing equity capital.
“We are frustrated by the tactics adopted by the Macy’s board of directors and its continued refusal to engage in discussions,” regretted Gavriel Kahane and Jonathon Blackwell, the directors of Arkhouse, quoted in the press release.
“If the restructuring plan announced last week did little to inspire investors, the annual results have reinforced our confidence in the long-term possibilities of the company” under new management, they added.
Questioned by AFP, Macy’s had not yet reacted.
The initial offer, described as “unsolicited and non-binding” by the department store chain, was rejected, the group considering that it “does not constitute a basis for concluding a non-binding agreement” and expressing by elsewhere “serious reservations” about the capacity of Arkhouse and Brigade Capital to carry out the operation successfully.
On Wednesday, the group’s managers announced the closure of 150 points of sale by 2026, after announcing a 3.5% reduction in its workforce in January.
According to its annual report, it employed around 94,500 people and had 722 stores at the end of 2022.
The group also published its results for 2023 on Tuesday. It earned $23.1 billion in revenue last year, a figure down sharply year-on-year (-5.5%). Its net profit remains in the green at $105 million, but down sharply (-91%).
Department store chains, which once attracted consumers to “malls”, these giant shopping centers, have seen their results suffer for years and are forced to reduce their scope. Their situation has worsened with the COVID-19 pandemic.