Investor group seeks 9 of Macy’s 14 board seats

Macy's Inc. said it received nine nominations to its board from Arkhouse Management Co., the activist investor leading an effort to acquire the department-store company.

Macy's said it would consider the directors but noted that it had previously rejected a $5.8 billion offer from Arkhouse and Brigade Capital Management. The retailer said Arkhouse and Brigade "have yet to provide any financing details that would enhance the actionability of their proposal despite multiple opportunities to do so."

Arkhouse, which joined with Brigade in a $21-a-share bid late last year, is seeking nine seats on Macy's 14-member board. Macy's said its board is "diverse, experienced and engaged" and has a "proven track record."

After Macy's rejected the bid, an Arkhouse executive said he was "hopeful" that the suitors could increase their offer if they had access to the books at Macy's.

Arkhouse wrote to the Macy's board earlier this month asking for an extension to its board director nomination window, Macy's said on Tuesday.

Macy's, like many U.S. department-store chains, has been facing a shift in consumer shopping habits that has hurt brands that operate in shopping malls. While Macy's sales jumped in 2021 thanks to pandemic stimulus, revenue has since declined for six consecutive quarters.

The company currently operates 489 Macy's stores, 32 higher-end Bloomingdale's locations and 158 Bluemercury beauty stores across the United States.

Representatives for Arkhouse didn't immediately respond to a request for comment.

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