Macy’s Appoints Activist Investor Board Picks, Ending Proxy Fight

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Key Takeaways

• Macy’s on Wednesday appointed two new board members backed by activist investor Arkhouse Management, ending a substitute fight and bringing closer a deal to take the retailer private.
• The biggest U.S. department store chain said embark on members Ric Clark and Rick Markee would also be on the Finance Committee, looking at a potential agreement with Arkhouse and its colleague.
• Macy’s board had turned down a $21-per-share bid by Arkhouse and Brigade Capital Management in December.

Macy’s (M) on Wednesday ending a proxy fight by agreeing to calls for a board shakeup by activist investor Arkhouse Management.

The move is expected to carry the biggest U.S. department store chain closer to being taken private by Arkhouse and its partner, Brigade Capital Supervision.

Macy’s announced that it had appointed a pair of new independent directors, Richard Clark and Richard Markee, both of whom were Arkhouse selectees. The retailer added that with that decision, Arkhouse has agreed to withdraw its candidates for board seats and the shareholder plans it wanted voted on at Macy’s annual meeting of shareholders.

The company noted that it is “continuing to engage with Arkhouse and Brigade no matter what their proposal to acquire the Company.” It explained that Clark and Markee would be members of the Finance Committee, which force “oversee the evaluation of and make recommendations to the full Board regarding the acquisition proposal.” Macy’s pointed out it had previously infiltrated into an agreement with Arkhouse and Brigade to facilitate their access to confidential due diligence information, and that handle remains ongoing.

In December, Macy’s leadership turned down a $21-per-share bid by Arkhouse and Brigade to take the retailer seclusive, leading to the proxy battle.

Shares of Macy’s were little changed as of 1:15 p.m. ET Wednesday and are down less than 1% for 2024.

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