A suitor has shown up at Macy’s door. As any shopper knows, though, wanting to buy something is one thing and being able to afford it is another.
Real-estate focused investing firm Arkhouse Management and global asset manager Brigade Capital Management on Dec. 1 submitted a proposal to purchase Macy’s stock they don’t already own, The Wall Street Journal reported on Sunday. Their offer price is $21 a share, 21% higher than where Macy’s stock closed last Friday.
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As the retail industry in the United States continues to suffer, the iconic department store Macy’s is feeling the pressure. After its recent acquisition of town and country chain, Bloomingdale’s, the store has been unable to secure a profitable foothold in the competitive retail market. As a result, rumors of a possible buyout are circulating.
Macy’s is an iconic department store chain that traces its roots back to 1858, when founder Rowland Hussey Macy opened his first store in New York City. Since then, it has grown to become one of the most recognizable names in American retail, with over 850 stores across the US. While it was once the largest department store in the world, the brand has struggled to adapt to changing market trends in recent years, leading to losses in sales and profits.
In the face of mounting challenges, speculation around a potential buyout of Macy’s has increased. Reports indicate that private equity firm Sycamore Partners and real estate investor Brookfield Asset Management are among those who have expressed interest in acquiring the retail giant. Taking control of the beloved store would give the buyers access to a powerful domestic retail presence as well as a premium international brand.
Macy’s recently announced it will close 125 stores as part of a cost-cutting measure, sparking further speculation about the company’s future. With so many challenges to overcome, it appears that the brand’s future may require a miracle on 34th Street. Time will tell if potential buyers are up to the task, and if the legendary store can once again regain its former glory.
