(Reuters) – Macy’s said on Monday it has ended talks with a consortium of investors including Arkhouse Management and Brigade Capital, saying its revised proposal to buy the department store chain lacked financing certainty and did not offer sufficient value.
In New York, Macy’s shares fell 11% in pre-market trading.
The investor group had offered to buy the Macy’s shares it did not already own at $24.80 per share, up from an offer of $24 per share announced in March.
The new offer represented a premium of nearly 43% over the stock’s closing price on December 8, the date of the first offer.
The failure of the talks comes at a crucial time for Macy’s, which is engaged in a major turnaround plan that includes job cuts and the closure of 150 stores by 2026.
The group, whose first store dates back to 1858 in New York, is facing a drop in traffic that is also affecting other department stores such as Nordstrom and Kohl’s.
Arkhouse and Brigade Capital Management did not immediately respond to a request for comment.
(Written by Ananya Mariam Rajesh in Bangalore; Diana Mandiá, edited by Blandine Hénault)
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