# Arkhouse Management and Brigade Capital Management Offer to Buy Macy’s for $5.8 Billion
In this article, we will discuss the recent offer made by Arkhouse Management and Brigade Capital Management to acquire Macy’s for $5.8 billion. This potential acquisition has generated significant interest in the retail sector.
## The Offer and Valuation
According to sources familiar with the matter, Arkhouse Management and Brigade Capital Management have proposed to buy Macy’s for $5.8 billion. The offer values the retailer at $21 per share, which is higher than the current market price of just over $17 per share. Macy’s shares saw a 19% increase in premarket trading on Monday following the announcement.
## Potential Higher Bid
Arkhouse Management and Brigade Capital Management have indicated that they would be willing to offer a higher bid based on due diligence. This suggests that they see additional value in the department store chain and are confident in its potential for growth.
## Macy’s Struggles and Turnaround Efforts
Macy’s has faced challenges in recent years as it has struggled to keep up with online competitors. Despite its efforts to draw customers back to its brick-and-mortar stores, the company has experienced a decline in sales, with a 7% year-over-year decrease.
In an attempt to pivot away from traditional shopping malls, Macy’s announced the opening of 30 new store locations at strip malls in October. However, these efforts have not been enough to reverse the decline in sales.
## Optimism and Performance Improvement
Macy’s expressed optimism after its most recent quarter, as it beat Wall Street’s expectations. The company’s performance improvement was primarily driven by sales at brands it owns, such as Bloomingdale’s and Bluemercury, rather than its namesake Macy’s chain.
## Acquisition Target in a Changing Retail Landscape
Macy’s has become an acquisition target as it grapples with sagging sales and competition from online upstarts and brands that prefer to sell directly to consumers. Similar to Kohl’s in 2022, which faced multiple acquisition offers that it deemed undervalued, Macy’s is now in a similar position.
## Retailers Facing Headwinds
Retailers across the board have faced challenges this year due to volatile interest rates and high inflation, which have impacted consumers’ spending power. However, the online shopping sector has shown resilience, with robust consumer spending during Black Friday and Cyber Monday.
## Outlook for the Holiday Season
While online spending during Black Friday and Cyber Monday was strong, the outlook for the holiday season remains uncertain. Several retailers have issued cautious fourth-quarter outlooks, raising concerns about consumer spending during this crucial period.
## No Comments from Involved Parties
Both Arkhouse Management and Macy’s declined to comment on the buyout offer. Brigade Capital Management has not yet responded to CNBC’s request for comment. The Wall Street Journal first reported the potential acquisition.
In conclusion, Arkhouse Management and Brigade Capital Management have made a significant offer to acquire Macy’s for $5.8 billion. This potential acquisition comes as Macy’s faces challenges in the retail sector and strives to compete with online competitors. The outcome of this offer will have a significant impact on the future of Macy’s and the retail industry as a whole.
