Macy’s Board of Directors responds to proposal from Arkhouse, Brigade

Macy’s confirmed that it received an unsolicited, non-binding proposal from Arkhouse Management and Brigade Capital Management to acquire all of the outstanding shares of the company for $21.00 per share in cash on December 1, 2023, and that the Macy’s Board of Directors has determined that the non-binding proposal does not constitute a basis to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade. The company said that, “Upon receipt of the unsolicited, non-binding proposal from Arkhouse and Brigade, consistent with its fiduciary duties, the Macy’s Board conducted a careful review of the proposal in consultation with its independent legal, financial and real estate advisors. Arkhouse and Brigade provided certain additional requested information relating to its financing plan, which the Board reviewed with the assistance of the Board’s advisors, but such additional information failed to address the Board’s concerns regarding Arkhouse and Brigade’s ability to finance their proposed transaction. Contrary to assertions by Arkhouse, Macy’s financial advisors never stated there were no further questions regarding the financing plan for Arkhouse and Brigade’s proposal. As recently as January 15, 2024, Macy’s financial advisors asked Jefferies, Arkhouse and Brigade’s financial advisor, whether there were any updates on the financing plan available to share with the Macy’s Board, and no additional information was provided. In light of the Board’s concerns, as well as the lack of compelling value in their non-binding proposal, the Board has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade.”