Macy’s flagship store in Herald Square in New York, December 23, 2021.
Scott Mill | CNBC
department store Macy’s On Wednesday, the company said it had resolved its proxy dispute with real estate investor Arkhouse and that it would add two new directors to its 15-member board.
The restructuring brings Macy’s closer to a deal that could privatize the 165-year-old department store.
Ric Clark, a former Brookfield executive, and Rick Markee will join Macy’s board effective immediately. Markee also serves on the discount retailer’s board Five down. Both Clark and Markee were nominees for Arkhouse.
“The board is open to the best path to creating shareholder value,” the company said.
Shares of Macy’s fell about 2% in early trading Wednesday.
Macy’s also said it provided confidential business information to the investor group led by Arkhouse as the two sides negotiated the terms of a potential sale. Both new directors will be part of the committee reviewing Arkhouse’s bid to buy the company.
Arkhouse first made an offer to delist the retailer in 2023. The investor, working with Brigade Management, has since increased its offer several times. In February, the investment firm-turned-activist launched a proxy fight within the company, naming a list of nine directors.
The appointments of Clark and Markee “will ensure that our discussions continue to be constructive and that our proposal is treated seriously and expeditiously,” Arkhouse managing partners Jonathon Blackwell and Gavriel Kahane said.
The legacy retailer struggled for nearly a decade as consumers quickly shifted to online shopping and turned away from department stores. Macy’s announced in February that it would close about 150 of its roughly 500 stores, just weeks after CEO Tony Spring took the top job.
The company has laid off thousands of people in recent years as it struggles to cope with the dramatically changing situation.
Macy’s has drawn activists’ attention before. Starboard Value, an established investor in the space, took a stake in the retailer in 2015 but sold it two years later after a potential takeover fell through.
Arkhouse’s offering differs from previous engagements with the company. The real estate investor wants to privatize the company, removing it from the rigors of the public market and giving executives time to streamline and adapt the company, which still has a significant real estate portfolio.
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2024-04-10 16:05:21
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