(Bloomberg) -- Arkhouse Management Co. and Brigade Capital Management boosted their offer for Macy’s Inc. by 14% after the retailer rebuffed a previous proposal.
The investors are now offering $24 per share for the storied department-store operator, up from $21 a share previously, according to a statement Sunday. The new offer represents a 33% premium to Macy’s $18.01 closing price on Friday.
Macy’s in January rejected the bid from the investor group, saying the offer lacked “compelling value.” The company has instead unveiled a restructuring that includes plans to close almost a third of its namesake US locations, while growing its Bloomingdale’s and Bluemercury brands.
Read more: Macy’s to Close 150 Namesake Stores, Grow Luxury Brands
But Arkhouse, which nominated nine directors to Macy’s board in February, is persisting in its efforts. The investor group on Sunday disclosed that Fortress Investment Group LLC and One Investment Management US are equity partners in the proposed transaction.
“We are steadfast in our commitment to execute this transaction,” Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell said in the statement. “We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium. This would provide Macy’s stockholders with significant value and immediate liquidity.”
Brigade touted its experience in the retail industry and the strength of its offer in a statement on Sunday, urging the board to “to proceed in good faith for the benefit of all stakeholders.”
{{/usCountry}}Brigade touted its experience in the retail industry and the strength of its offer in a statement on Sunday, urging the board to “to proceed in good faith for the benefit of all stakeholders.”
{{/usCountry}}Macy’s on Sunday confirmed it received the revised proposal, saying that it will “carefully review and evaluate” the offer.
Read more: Macy’s Rejects $5.8 Billion Takeover Offer From Investors
Macy’s shares reached a high of as much as $21.24 following the initial offer, but have since retreated even after the company’s restructuring efforts. The Wall Street Journal earlier reported on the raised offer.
(Updates with Macy’s statement in seventh paragraph)
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