Arkhouse Management Co. and Brigade Capital Management have increased their buyout offer for Macy’s (M) to roughly $6.9 billion, the Wall Street Journal reported, citing sources familiar with the matter.
Shares in Macy’s rose 4.5% in premarket trading following the news.
The investors are now offering $24.80 per share for Macy’s stock they don’t already own, an increase from their previous offer of $24 per share announced in March. That offer was itself improved from an earlier $21 per share bid made in December.
The new offer requires Macy’s board to consider whether the retailer’s ongoing turnaround would be more successful as a private company or if it should remain public. The board must weigh this against the vision of the new CEO, Tony Spring, who asserts that his turnaround plan is starting to take effect.
Spring, who took over in February, is closing underperforming stores and revitalizing those with better sales figures. He is also focusing on expanding Bluemercury, the high-end skincare and cosmetics chain, which has seen stronger sales recently compared to Macy’s and Bloomingdale’s, thanks to a post-pandemic surge in demand for beauty products in the US.
In May, Spring said that Macy’s had “a strategy that is showing green shoots.”
Macy’s stock fell nearly 11% in 2024, underperforming the broader market.