Macy's Opens Books for Possible Buyout

New York—Macy’s Inc. may be one step closer to a buyout.

The retailer is sharing certain confidential due diligence information with real estate investment firm Arkhouse Management and asset management firm Brigade Capital Management.

The companies offered Macy’s a $6.6 billion buyout deal, their second offer after the retailer declined their initial offer of $5.8 billion.

“The board is open-minded about the best path to create shareholder value and is committed to continuing to take actions that it believes are in the best interests of the company and all Macy’s Inc. shareholders,” the retailer said in a statement published Wednesday.

Macy’s has been battling declining sales, and recently announced it was implementing another turnaround plan, this one dubbed “A Brand New Day.”

The plan entails closing 150 Macy’s stores over the next three years while investing in the remaining locations and opening more stores for its luxury brands, Bloomingdale’s and Bluemercury.

The retailer also announced that one of the potential buyers, Arkhouse Management, ended its proxy contest after Macy’s appointed two of its nine nominees to the board and its finance committee.

The new independent directors are Richard (Ric) Clark and Richard (Rick) L. Markee.

Arkhouse had been challenging Macy’s board, nominating nine director candidates to the 14-member board following Macy’s rejection of its initial buyout offer.

Following the appointments of Clark and Markee, Arkhouse agreed to withdraw its seven other director nominations.

Clark and Markee will join the board’s Finance Committee, which will also oversee the acquisition proposal.

The company also implemented previously announced board changes, appointing CEO Tony Spring as its chairman. Douglas W. Sesler has been appointed as an independent director.

Former Macy’s CEO Jeff Gennette and board member Frank Blake will retire.

“The Macy’s, Inc. board is committed to acting in the best interests of all Macy’s, Inc. shareholders, and the composition of our board is something we take seriously,” said Paul Varga, lead independent director of Macy’s.

“We are thrilled to have Tony serving as chairman moving forward, which completes our previously announced company and board leadership succession plan. Further, adding Ric and Rick, along with Doug, our other recently announced new director, to the board will provide us with a valuable mix of expertise as we continue to oversee the company’s strategic direction.”

Macy’s ranked No. 7 on National Jeweler’s 2023 “$100 Millon Supersellers” list, with an estimated $1.7 billion in jewelry and watch sales, up from $1.64 billion the previous year.