Macy’s ‘Is Melting Away’: Investor Brings $6.6 Billion Bid

(CTN News) – Despite the Macy’s company’s desire for a new beginning, a battle to take it private is intensifying and doubts linger regarding its ability to succeed.

The newly appointed CEO of the company, Tony Spring, acknowledges that changes must be made to the business in the near future.

In an interview with Yahoo Finance, Spring stated, “We will not abandon Macy’s as it stands today. It is foolhardy to believe that leaving Macy’s as it is today will lead to future success.”

A spokesperson for Spring said that the brand will “evolve,” adapt its product offerings, and integrate its physical and digital presences “thoughtfully,” but that this will be done “with the appropriate actions, … time, and support of our organization.”

Activist shareholder Arkhouse Management is not waiting for the results. The firm announced a new bid on Sunday after its $5.8 billion bid with Brigade Capital Management was rejected in late January.

Despite Macy’s Board of Directors’ delay tactics and its continued refusal to engage with our credible buyer group, we remain frustrated. “Despite this, we remain steadfast in our commitment to complete this transaction,” Arkhouse stated in the release.

Arkhouse maintains that Macy’s needs more fundamental changes in order to survive. This is reflected in its continued pursuit of the company.

In a recent announcement, Macy’s announced a new growth strategy, dubbed “A Bold New Chapter,” which includes closing 150 underperforming stores in order to reinvest in the remaining 350 stores.

According to Spring, “a good number” of the closing stores are Macy’s properties, which will allow the company to capture their real estate value. Furthermore, the strategy calls for enhancing its technology platform and opening a limited number of Bloomingdale’s, Bluemercury, and Macy’s small-format stores.

Yahoo Finance quoted Arkhouse’s managing director Gavriel Kahane as saying that the plan does not go far enough.

It is unlikely that incremental changes related to digital displays, merchandising, or even store closures will result in any material value being delivered to shareholders, according to Kahane.

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