Macy’s shares soared on reports of a takeover offer

New york
CNN
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Share of Macy’s jumped more than 20% in premarket trading Monday in a Wall Street Journal reports that a private investment group has made a $5.8 billion offer for the iconic store.

According to the report, the offer, which will pay shareholders 32% more than the closing price of the shares on Friday, comes from Arkhouse Management, an investment firm that focused on real estate, and Brigade Capital Management, a global asset manager, noting that the bidders were there. discussed the proposal with Macy’s.

It is not clear how the retailer will react to the request. An Arkhouse spokesman had no comment on the Journal’s report. Macy’s and Brigade did not immediately respond to a request for comment.

Macy’s has 722 store locations in 43 states, Washington, DC; Puerto Rico and Guam. It operates approximately 500 Macy’s brand stores, as well as 55 Bloomingdale’s department stores and 160 locations of the beauty and personal care chain. Bluemercury tire, which was found in 2015.

Macy’s and others general stores been struggling for years now. Competition from online retailers such as Amazon and big box stores, such as Walmart and Target – where consumers have the opportunity to shop for as well as clothing and other household items – giving Macy’s a little shopping touch.

In recent years Macy’s has acquired closed shop to cut costs. Its revenue in the first three quarters of this fiscal year fell by 74% compared to the previous year. Sales at stores open about a year were down 7%.

In June it was cut annual profit and sales when consumer demand was slow.

“The American consumer, especially at Macy’s, pulled back more than we expected,” Macy’s CEO Jeff Gennette said on Thursday’s earnings call. Consumers are “redistributing” spending on food, essentials and services, he said.

Gennette, who has run the 165-year-old grocery store for the past seven years, is ready to retire in 2024.