Macy’s, one of the most iconic department stores in the United States, has resolved its proxy fight with Arkhouse Management, an activist group. As part of the settlement, Macy’s has agreed to appoint two new directors to its board, bringing it closer to a potential deal that could take the company private.
The two new directors joining Macy’s board are Ric Clark, a former executive at Brookfield, and Rick Markee, who also sits on the board of discount retailer Five Below. Both Clark and Markee were nominated by Arkhouse. This move demonstrates Macy’s willingness to consider all options in order to create shareholder value.
The announcement of the settlement caused a slight dip in Macy’s shares, which fell around 2% during pre-market trading on Wednesday. However, this may be a temporary reaction as investors digest the news and await further updates on the potential sale of the company.
In addition to the board appointments, Macy’s has also shared confidential business information with the Arkhouse-led investor group as part of their ongoing negotiations. This indicates that both parties are actively engaged in discussions regarding a possible sale.
Arkhouse initially made an offer to take Macy’s private in 2023 and has since increased its offer multiple times. The activist group is working in collaboration with Brigade Management and launched a proxy fight at Macy’s earlier this year by putting up a nine-director slate.
The appointment of Clark and Markee to the board is seen as a positive step by Arkhouse, as it ensures that their proposal is taken seriously and given the proper attention. The managing partners of Arkhouse, Jonathon Blackwell and Gavriel Kahane, expressed their satisfaction with the new appointments, stating that it will facilitate constructive discussions moving forward.
This development marks an important milestone in Macy’s journey towards potential privatization. As one of the oldest and most recognizable department stores in America, Macy’s has faced significant challenges in recent years due to changing consumer preferences and the rise of e-commerce. By partnering with Arkhouse, Macy’s aims to revitalize its business and unlock its true potential.
The resolution of the proxy fight and the addition of new directors to the board indicate that Macy’s is actively exploring all avenues to create value for its shareholders. As the negotiations between Macy’s and Arkhouse progress, it will be interesting to see how the potential sale unfolds and what it means for the future of this retail giant.
Please note that this article is based on breaking news, and further updates may be available in the near future. Stay tuned for more information on Macy’s and its ongoing developments.
