Macy’s rejected an unsolicited $6 billion bid from an activist investor to take the famed department store private last month. Now, the activist group is taking another shot at Macy’s, launching a proxy fight to take control of the board.
Arkhouse Management Co., a real estate investment group, nominated nine directors to Macy’s board of directors, effectively trying to seize control of the 14-member board.
Macy’s stock price has dropped 75% from a peak of $73 a share in 2015. Since then, it has closed nearly 300 stores — almost one third of its locations — but still operates about 700 across its brands.
Last month, Macy’s announced it was laying off about 3.5% of its workforce, or roughly 2,350 employees.
The company’s struggles have attracted the attention of activist investors, such as Arkhouse.
Macy’s said Tuesday it will evaluate Arkhouse’s proposed board candidates, but criticized Arkhouse and another activist investor, Brigade, in a statement.
“Arkhouse and Brigade have yet to provide any financing details that would enhance the actionability of their proposal despite multiple opportunities to do so, and instead of attempting a constructive dialogue, Arkhouse has chosen to launch a proxy contest,” Macy’s said in a statement.
Macy’s has struggled against rising competition and a migration of shoppers away from department stores.
The company has attempted numerous strategies in recent years to revitalize business, such as new brands and smaller stores, but the moves have not altered its long-term trajectory.
Arkhouse did not publicly disclose its plans for Macy’s, but analysts believed it would sell off Macy’s valuable real estate and perhaps take other actions, such as spinning off its e-commerce business.
But Macy’s “determined that the proposal was not actionable and lacked compelling value.”
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