NEW YORK – The potential acquirers of Macy’s Inc. are reportedly on the hunt for financial backing.

Guggenheim Partners seeking out backers for the $6.6 billion buyout bid, according to Crain’s New York Business. Acting on behalf of Arkhouse and Brigade, the investment house is talking with a variety of potential lenders, including private credit firms.

Early last month, Macy’s Inc. agreed to seat two new independent directors on its board in a deal with Arkhouse. Both also joined the company’s Finance Committee, which is tasked with reviewing the buyout bid, along with any alternatives.

Macy’s also agreed to open its books for due diligence review, access Arkhouse and Brigade had said was crucial to their effort to secure financing for the proposed go-private transaction.

The buy-out play began last December, when Arkhouse and Brigade approached Macy’s board of directors with their original $5.8 billion offer. Here is how the action has unfolded since.

January

• Macy’s Inc. rejects the $5.8 billion bid, saying the proposal lacks “compelling value.”
• The company also expresses serious reservations about the bidders’ ability to finance a deal.
• Arkhouse/Brigade press Macy’s Inc. to open its books for due diligence, saying they need more information to nail down financing.
• Macy’s refuses.

February

• Arkhouse mounts a proxy battle for Macy’s board of directors.
• Its nominees include former senior executives from Target Corp., Toys “R” Us and Sears Holding Corp. along with real estate investment firm principals.
• Macy’s Inc. announces it will shutter 150 underproductive Macy’s locations by the end of 2026 and step up investment in the remaining 350 go-forward Macy’s units.
• The move is part of a strategy the Macy’s Inc. calls “A Bold New Chapter.”
• Posting sluggish Q4 results, Macy’s says 2024 will be a transitional year.

March

• Arkhouse/Brigade up their offer to acquire Macy’s Inc. to $24.00 per share, or $6.6 billion.
• The offer also identifies Fortress Investment Group and One Investment Management US as contributors to the 50% equity component of the proposed transaction.
• In response, Macy’s Inc. releases a terse statement saying its board will review and evaluate the new offer.

April

• Macy’s strikes a deal with Arkhouse, immediately adding Richard (Ric) Clark and Richard (Rick) L. Markee to its board of directors.
• Clark’s experience includes nearly four decades in real estate, mergers and acquisitions and capital markets. Markee previously held senior leadership roles at Vitamin Shoppe and Toys “R” Us.
• In exchange, Arkhouse agrees to withdraw its slate of nominees, pulling the plug on its proxy fight for control of Macy’s board.

Macy’s Inc. has made no public statements about the buyout push since announcing the new board members on April 10. The company is scheduled to report its first quarter results on May 21.

See also:

• Macy’s leans on corporate staff to get back to the office – or else
• Macy’s wiping out more stores as it pursues “bold new chapter”

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