Arkhouse Management is nominating nine people for Macy’s board of directors, igniting a proxy battle after the department store operator rejected a $5.8 billion takeover offer from the investment firm and Brigade Capital Management.
Arkhouse and Brigade had offered $21 for each of the remaining shares in Macy’s they don’t already own. Macy’s said at the time that its board reviewed the investment firms’ proposal and not only had concerns about the financing plan, but also felt there was a “lack of compelling value.”
Macy’s Inc. said Tuesday that it had been seeking additional financing information from Arkhouse and Brigade to possibly advance talks with its board. But Macy’s said instead of making an attempt to provide additional information, Arkhouse sent a letter earlier this month requesting that the company extend its director nomination window by 10 days.
“Arkhouse and Brigade have yet to provide any financing details that would enhance the actionability of their proposal despite multiple opportunities to do so, and instead of attempting a constructive dialogue, Arkhouse has chosen to launch a proxy contest,” Macy’s said in a statement.
Arkhouse did not immediately respond to an email seeking comment.
Macy’s said that its nominating and corporate governance committee will evaluate Arkhouse’s board nominees. The New York company currently has 14 directors.
A date has yet to be set for Macy’s annual meeting.
Macy’s recently announced that it was laying off about 3.5% of its total headcount, or about 2,350 employees. The company also announced that it was closing five locations.
Its stock fell slightly before the market open.
