WASHINGTON: A group of investors have offered to buy US department store giant Macy’s for $5.8 billion, the Wall Street Journal reported Monday. Arkhouse Management, a firm specializing in real estate investments, and asset manager Brigade Capital Management submitted a proposal to acquire the company’s remaining stock for $21 per share, the financial daily reported, citing “people familiar with the matter.”

Macy’s shares were trading for $17.39 per share as of Friday’s market close. Though the department store sector has been hit by the rise of online shopping, the decline of malls and then the COVID-19 pandemic, the investors believe “Macy’s is undervalued in the public markets,” according to the Journal. Macy’s turned a profit of roughly $1.2 billion last year, though in the third quarter of 2023 profits declined by more than half, to $43 million, compared to $108 million over the same period in 2022. The bid was reportedly submitted December 1.

Contacted by AFP, an Arkhouse representative declined to comment. Brigade did not respond to a request for comment, while Macy’s also declined to comment. The investor group has discussed the proposal with Macy’s, and the store’s board has met to discuss the offer—though it isn’t clear if the retailer is in favor of the bid, the Journal reported. Macy’s also owns the department store Bloomingdale’s and beauty brand Bluemercury. — AFP