NEW YORK - Investment firm Arkhouse Management Co. LP, which holds a 4.4% economic exposure in Macy's Inc. (NYSE: NYSE:M), has put forward nine independent candidates for election to the retailer's Board of Directors at the upcoming 2024 Annual Meeting of Shareholders. This move follows Arkhouse's and its partner Brigade Capital Management's rejected proposal to acquire all outstanding shares of Macy's for $21.00 per share, a bid that was turned down by the company due to financing and price concerns.
Arkhouse's slate of nominees is said to possess the necessary retail, real estate, and capital markets expertise to explore all potential avenues for maximizing shareholder value. The nominees include seasoned leaders such as Richard Clark, with nearly four decades in real estate and capital markets; Richard L. Markee, who has extensive retail leadership experience; and Mohsin Y. Meghji, a recognized turnaround professional.
The other candidates are Mitchell Schear, with over 40 years in real estate and investing; Nadir Settles, known for his expertise in real estate and sustainable investing; Gerald L. Storch, a former CEO of Hudson’s Bay Co.; Sharen J. Turney, a former CEO of Victoria’s Secret; Andrea M. Weiss, with a background in marketing and global retail; and Isaac Zion, who has a long history in executive management and investments.
Arkhouse has urged the Macy's Board to provide specific information they require regarding the financing of the proposed acquisition to address any outstanding concerns. The firm's decision to nominate a new board is portrayed as a necessary step to protect the rights of all shareholders and to address what they consider the Board's history of poor performance and unwillingness to engage constructively.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information is based on a press release statement and contains forward-looking statements, which involve risks and uncertainties. There can be no assurance that the plans, estimates, or expectations will be achieved.
Arkhouse Management is a New York-based investment firm with a focus on M&A strategies to unlock value dislocations in public and private markets. The firm's team has closed more than $25 billion worth of real estate transactions and has an 18-year track record in shareholder activism. Legal and financial advisors are engaged to assist in the process, with Cadwalader, Wickersham & Taft LLP and Longacre Square Partners serving as legal counsel and strategic advisor to Arkhouse, respectively. Morrow Sodali is acting as proxy advisor.
InvestingPro Insights
As Arkhouse Management Co. LP takes a bold step in the boardroom battle at Macy's Inc. (NYSE: M), the retailer's financial metrics and market performance remain a critical factor for investors. According to InvestingPro, Macy's is currently trading at a low earnings multiple, with a P/E Ratio of 7.69, which indicates that the stock could be undervalued compared to earnings. This aligns with the InvestingPro Tip highlighting that the company is trading at a low earnings multiple.
The InvestingPro Data also shows a notable 31.72% increase in the 6-month Price Total Return as of the latest data, suggesting a significant price uptick over the last six months, which is a positive sign for investors. Additionally, Macy's has demonstrated a commitment to shareholder returns, maintaining dividend payments for 21 consecutive years, with a current Dividend Yield of 3.4%.
However, challenges lie ahead. Analysts anticipate a sales decline in the current year, with the latest figures showing a Revenue Growth of -7.23% over the last twelve months as of Q3 2024. This may reflect broader industry trends or company-specific issues that the new board nominees will need to address.
For investors seeking a deeper understanding of Macy's Inc. and its prospects, there are additional InvestingPro Tips available, including insights on industry positioning and future profitability expectations. For a more comprehensive analysis, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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