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The Macy’s flagship store in the Herald Square district of New York. Shares of the stock rose sharply after a $5.8 billion bid for the company was reported.
New York CNN –
Shares of Macy’s jumped more than 20% in premarket trading on Monday after The Wall Street Journal reported that a private investor group made a $5.8 billion offer for the iconic retailer.
The report said the offer, which would pay shareholders a premium of 32% above the stock’s closing price on Friday, came from Arkhouse Management, an investment firm specializing in real estate, and Brigade Capital Management, a global asset manager, the deal discussed Proposal with Macy’s.
It’s not clear how the retailer views the proposal. An Arkhouse spokesperson did not comment on the Journal report. Macy’s and Brigade did not immediately respond to a request for comment.
Macy’s has 722 stores in 43 states: Washington, DC; Puerto Rico and Guam. The company operates about 500 Macy’s-branded stores, as well as 55 of the more upscale Bloomingdale’s-branded stores and 160 locations of the beauty and skin-care chain Bluemercury, which it acquired in 2015.
Macy’s and other traditional department stores have struggled for decades. With competition from both online retailers like Amazon and big-box retailers like Walmart and Target, which offer shoppers the opportunity to buy groceries as well as clothing and other home goods, Macy’s is left with a smaller slice of the retail pie.
In recent years, Macy’s has closed stores to cut costs. Net profit fell 74% in the first three quarters of this fiscal year compared to last year. Sales at stores open at least a year fell 7%.
In June, the company cut its full-year profit and revenue forecast after customer demand weakened.
“The U.S. consumer, particularly at Macy’s, has declined more than we expected,” Macy’s CEO Jeff Gennette said in an earnings call Thursday. Customers have “redistributed” their spending across food, essential goods and services, he said.
Gennette, who has led the 165-year-old retailer for the past seven years, will retire in 2024.
Originally posted 2023-12-11 13:28:16.