Macy’s layoffs 2,300 employees and officially refuses a 5.8 billion USD offer from Arkhouse Management and Brigade Capital Management. Moreover, the group managing Macy’s, Bloomingdale’s and Bluemercury expressed “serious doubts” over the ability of financing the offer. Even so, the two funds aren’t backing off. The question comes naturally: what’s happening to Macy’s?
What’s happening to Macy’s?
It’s not an easy moment for Macy’s, which has taken two important decisions for the future. The first can be explained as follows: “while we get ready to implement a new strategy to satisfy consumer expectations and a market continuously evolving, we took the difficult decision to reduce our workforce by 3.5%, to become more agile”.
Arkhouse Management and Brigade Capital Management
The second is financial. In mid-December, the Wall Street Journal had broken the news of a 5.8 billion USD offer presented by Arkhouse and Brigade Capital Management. The offer was welcomed by analysts with reservation, as they considered it too low. After two months during which both parties maintained silence, Macy’s confirmed the existence of the offer, equal to 21 USD per share.
Serious doubts
Macy’s CEO, Jeff Gennette, answered that Macy’s board of directors “has serious doubts over the ability of financing the offer”. Moreover: “The offer is well below the current market value for similar transactions” (source WWD). Arkhouse Management and Brigade Capital Management through aren’t backing down and have made the claim to be willing to increase their offer. After all, Macy’s management wants a higher offer. One that may lead other suitors to show themselves.
Read also:
