Arkhouse and Brigade up Macy’s takeover offer to $6.6 billion following rejection of previous deal

NEW YORK — Arkhouse Management and Brigade Capital Management are increasing their bid to acquire Macy’s in a deal now valued at $6.6 billion.

The investment firms announced Sunday that they had submitted an all-cash offer of $24 for each of the remaining shares of Macy’s that they do not already own – up from an earlier offer of $21 per share.

Macy’s rejected the previous deal, valued at $5.8 billion, in January. The retailer said at the time that its board had reviewed the investment firms’ proposal and not only had concerns about the financing plan, but also found there was a “lack of compelling value.”

In a joint statement Sunday, Arkhouse management partners Gavriel Kahane and Jonathon Blackwell said they remained “frustrated by the Macy board’s delaying tactics” and “continued refusal to engage” – but were still committed to completing the transaction.

Kahane and Blackwell added that they had repeatedly attempted to address the company’s concerns and were open to an increase in the purchase price “subject to customary due diligence.”

Macy’s confirmed on Sunday that it had received the “revised, unsolicited, non-binding” proposal. The New York-based company said its board would carefully review the offer and that it did not plan to comment further until the review was complete.

Last month, Arkhouse decided to nominate nine people to Macy’s board. At the time, Macy’s said it was seeking additional financing information, but Arkhouse instead sent a letter requesting an extension of the director nomination period by 10 days.

On Tuesday, Macy’s announced it would close 150 namesake stores over the next three years, including 50 by the end of the year, after a fourth-quarter loss and declining sales. As part of its restructuring efforts, the department store chain also said it would upgrade its remaining 350 stores.