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Macy's Rejects $5.8 Billion Bid
Macy's Inc. has rejected an unsolicited bid that would take the department store giant private in a $5.8 billion deal.
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Macy's Rejects $5.8 Billion Bid
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MACY GRAY
Macy's Inc. has rejected an unsolicited bid that would take the department store giant private in a $5.8 billion deal. (Read More)
Noam Galai/Getty Images
Macy's Rejection: Macy's has turned down a $5.8 billion unsolicited bid from Arkhouse Management Co. LP and Brigade Capital Management, LP, stating concerns about financing and a "lack of compelling value."
Board's Determination: After careful consideration, Macy's board determined that the proposed transaction is not actionable and fails to provide compelling value to shareholders.
Finance Concerns: Macy's board cited concerns about the ability of Arkhouse and Brigade to finance the proposed acquisition.
Open to Opportunities: Macy's remains open to opportunities that are in the best interest of the company and its shareholders.
Arkhouse's Response: Arkhouse managing partners threaten to engage with Macy's shareholders if talks do not progress this week and express a willingness to increase their original proposal.
Due Diligence: Arkhouse requests access to necessary due diligence and offers to sign a mutual non-disclosure agreement.
Belief in Macy's Potential: Arkhouse partners express conviction in Macy's long-term success and the potential for growth as a private company.
Motivated to Achieve Acquisition: Arkhouse partners state their strong motivation to consummate the acquisition of Macy's and their willingness to engage directly with stockholders.
Macy's Strategy Unveiling: Last week, Macy's announced store closures and workforce layoffs as part of their preparation to introduce a new strategy.
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NET LEASE NUGGIES
Macy's aims to streamline operations amid leadership changes and a takeover bid. The retail giant plans to close five stores, resulting in approximately 2,350 job cuts, mostly at the corporate office. Macy's will also introduce a new strategy under incoming CEO Tony Spring, while current CEO Jeff Gennette prepares to retire. Additionally, a group of investors is bidding $5.8 billion to take the company private. Despite declining sales, Macy's reported a better-than-expected Q3 performance, driven by improved gross margins and merchandise inventory. Digital sales decreased, while same-store sales were down at Macy's and Bloomingdale's. (Read More)
Store opening projections remain steady, with closures expected to decrease. Coresight Research's U.S. and U.K. Store Tracker Extra report forecasts around 5,500 new store openings in 2024, slightly down from the 5,645 in 2023. Dollar General plans to open 800 stores this year. Despite limited retail space, closures are predicted to drop to 4,000 in 2024. The apparel sector and drug store chains will see the most closures. In 2023, major retailers opened 5,645 stores, while closing 4,913. Interest rate cuts and discount segment expansions are expected to continue driving future store openings. (Read More)
Bojangles highlights significant store count growth in 2023. The North Carolina-based quick-serve chain, known for its chicken, biscuits, and tea, opened 40 new restaurants last year, including 10 in new markets. It also added 270 units to its growth pipeline, thanks to multi-unit franchising deals. Bojangles strengthened its expansion strategy with updated restaurant design, a streamlined menu focused on boneless chicken, and the introduction of the "Genesis" building prototype featuring digital menu boards and dual drive-thru lanes. With a strong group of franchisees, Bojangles aims to expand its national presence while meeting the rising demand for chicken. (Read More)
Doherty Enterprises acquires 21 Applebee’s restaurants in the New York City metro area. Doherty Enterprises, which already owns and operates over 160 restaurants across four states, has purchased the 21 Applebee’s locations from fellow franchisee Apple Metro. This acquisition will help Doherty move up to the 25th spot among the top 200 franchisees in the U.S., according to Restaurant Finance Monitor. The team members from the acquired restaurants will have the opportunity to work for Doherty. Prior to the acquisition, Apple Metro owned and operated 29 Applebee’s restaurants in New York and Westchester County. (Read More)
Jollibee to Open 100th North American Location in Surrey, BC International restaurant sensation, Jollibee, will open its new Surrey, British Columbia location on Thursday, January 25. This marks Jollibee's 100th location in North America. Known for its delectable Jolly Crispy Chicken and Peach Mango Pies, Jollibee invites first-timers and long-time fans alike to relish its great-tasting food at a great value. To celebrate the grand opening, Jollibee will be hosting three days of giveaways and exclusive merch for lucky customers. With over 1,500 restaurants across 17 countries, Jollibee is quickly expanding in North America. (Read More)
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