MajorsJul 05, 2024
Saks Fifth Avenue Owner to Acquire Neiman MarcusMajorsJul 16, 2024
Macy’s Ends Buyout Talks
The retailer will not be making a deal with Arkhouse Management and Brigade Capital Management, opting to focus on its turnaround plan.
The Macy’s flagship store in New York’s Herald Square. The retailer announced this week that it has ended buyout talks with two firms, Arkhouse Management and Brigade Capital Management, after more than seven months of negotiations.
New York—Macy’s Inc. has ceased discussions with its potential buyers, the company announced Monday.
In March, real estate investment firm Arkhouse Management and asset management firm Brigade Capital Management offered the department store chain a buyout deal worth $6.6 billion.
It was their second offer after the retailer declined their initial offer of $5.8 billion in December 2023.
Macy’s had been considering the revised offer, opening its books to the firms in April.
However, its board of directors unanimously have decided to end discussions with Arkhouse and Brigade.
“At this time, after careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process,” said Paul Varga, lead independent director of Macy’s.
Related stories will be right here …
In March, real estate investment firm Arkhouse Management and asset management firm Brigade Capital Management offered the department store chain a buyout deal worth $6.6 billion.
It was their second offer after the retailer declined their initial offer of $5.8 billion in December 2023.
Macy’s had been considering the revised offer, opening its books to the firms in April.
However, its board of directors unanimously have decided to end discussions with Arkhouse and Brigade.
“At this time, after careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process,” said Paul Varga, lead independent director of Macy’s.
Macy’s said it had been working “in good faith” with Arkhouse and Brigade for more than seven months now, with the understanding that there was a willingness to possibly increase the purchase price to an amount Macy’s board might accept.
Following “hundreds of hours” of due diligence, the involved companies agreed that Arkhouse and Brigade would deliver a fully financed and actionable proposal to Macy’s by June 25.
The offer was to include the best purchase price per share and fully negotiated commitment papers for all the debt and equity needed to finance the deal.
On June 26, Arkhouse and Brigade instead sent Macy’s a “check in” letter, said the retailer, with an increased bid of $24.80 per share.
Though slightly higher than the second offer of $24 per share, it was within a range that Macy’s board already had said was “not compelling.”
In addition, the financing papers submitted to Macy’s were “insufficient,” leading the board to believe that a viable offer cannot be reached within a reasonable period of time.
Macy’s said its management team instead will focus on increasing shareholder value through its latest turnaround plan, called “A Bold New Chapter.”
Announced in February, the plan includes closing 150 stores over the next three years as it grapples with declining sales.
The three pillars of the strategy are: strengthening the Macy’s brand, accelerating luxury growth, and simplifying and modernizing end-to-end operations.
Macy’s Chairman and CEO Tony Spring said, “Our team continues to be singularly focused on creating value for our shareholders. While it remains early days, we are pleased that our initiatives have gained traction, reinforcing our belief that the company can return to sustainable, profitable growth, accelerate free cash flow generation, and unlock shareholder value.”
The board is open to exploring all paths to increased shareholder value, added Varga, and believes the new strategy is the best opportunity for doing so.
Macy’s said it will share additional details about how the strategy has been working so far as part of its second-quarter earnings, which it will report next month.
Editors' Picks
Sponsored by
More on Majors
The Latest
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry StoreAuthorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.
SourcingMar 28, 2025
19th-Century Jade Book Now Available in EnglishLotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ RingThe ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ OutlookThe Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.
Weekly QuizMar 27, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand AmbassadorThe Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent JewelerThe family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco WatchesThe “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat RubyThe ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft RecoveredThe two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More JewelryThe time to start experimenting with video content is now, writes columnist Emmanuel Raheb.
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic DesignFrom striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair ServicesThe auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.
FinancialsMar 21, 2025
Swarovski Says Its Lab-Grown Diamond Sales Doubled in 2024The company also noted record sales in the United States and a strong performance in its jewelry category.
SourcingMar 21, 2025
BrankoGems To Hold Conference in MontanaThe event, set for June 13-15, will feature educational presentations and guided visits to the state’s sapphire mines.
TrendsMar 21, 2025
Piece of the Week: Marrow Fine’s ‘Til Death’ RingAfter the black enamel band became a best-seller for the brand, it has now launched an enamel ring personalization program.
IndependentsMar 20, 2025
Korman Fine Jewelry’s New Store Is Double the Size The Austin, Texas, jeweler’s new 11,000-square-foot store is set to open this summer.
Events & AwardsMar 20, 2025
JCK Rocks to Feature Snoop Dogg, Jason DeruloThe rapper and singer-songwriter will perform at Tao Beach on June 8.
TechnologyMar 20, 2025
Chris Ploof, Severine Ferrari Launch YouTube Video Series“Conversations with Chris Ploof” covers tips for men buying wedding bands, behind-the-scenes footage of Ploof in his studio, and more.
Lab-GrownMar 20, 2025
Beyond Jewelry: Possibilities in the Lab-Grown Diamond SectorAs lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.
FinancialsMar 19, 2025
Signet Jewelers to Close Stores, Cut Staff Amid Declining SalesThe moves are part of the retailer’s new turnaround plan, “Grow Brand Love,” which also includes emphasizing brand loyalty over store banners.
CollectionsMar 19, 2025
Jessica McCormack’s New Collection Elevates Office WearThe “Rush Hour” campaign stars Zoë Kravitz in bold, wearable pieces designed to make a statement in the workplace.
WatchesMar 19, 2025
Breitling Acquires Another Watch Brand From the 1800sBreitling is reviving Gallet, which was founded in 1826 and is known for making watches used in the early days of long-distance travel.
