Macy’s shares plummeted more than 14% on Monday morning after the retailer announced it would cease working with two investment funds that had been attempting a takeover.
Spotify has introduced comments on its podcast platform, enhancing user interaction.
The retailer shared it had ended its collaboration with Arkhouse Management and Brigade Capital Management, which had presented a $5.8 billion buyout proposal last December.
“Our team remains focused on creating shareholder value,” said Macy’s CEO Tony Spring. “Although it is early, our initiatives are showing promise, reaffirming our belief that the company can achieve sustainable, profitable growth, increase free cash flow, and unlock shareholder value.”
Macy’s partnership with the funds started in April after they raised their offer to $6.6 billion and were given two seats on its board. However, the board concluded that the proposal lacked secure financing and that Arkhouse-Brigade did not have a sufficient plan for the company’s future.
To overcome years of retail challenges, Macy’s launched a reorganization strategy called “A Bold New Chapter” shortly after the takeover attempt. This strategy aimed to simplify operations by closing stores and targeting higher-end customers.
“The Board unanimously found that the latest Arkhouse and Brigade proposal still does not offer compelling value to Macy’s, Inc. shareholders,” the company stated. “The Board believes continuing the diligence process is not justified or in shareholders’ best interests due to: 1) significant uncertainty around the financing, 2) the less than compelling value of the proposal, and 3) the substantial distraction from the management team’s focus during a critical phase of executing the company’s strategy.”