Macy's ends buyout talks, announces layoffs and store closures to adjust to online shopping era

From CNBC: 2024-07-15 09:33:19

1. Macy’s announced layoffs of 2,350 employees, 3.5% of its workforce, and the closure of five stores to adjust to the online shopping era.

2. Macy’s board ends talks with activists seeking to take the company private for $6.9 billion due to financing uncertainties and lack of compelling value.

3. Bidder group Arkhouse and Brigade made several price hikes up to $24.80/share in takeover efforts of Macy’s.

4. CEO Tony Spring leads Macy’s turnaround efforts, closing 150 stores, and opening new locations to boost sales amid stiff competition.

5. Macy’s struggles with high inflation, losing younger shoppers to online and off-price stores, lowering sales expectations for the fiscal year.

6. Macy’s intends to revitalize stores, focusing on improved sales results at 50 stores with investments in staffing, merchandise displays, and events.

7. Shares of Macy’s fell about 5% in 2024, trailing the S&P 500, as Arkhouse and Brigade sought to unlock value in the company’s real estate holdings.

8. Arkhouse and Brigade aimed to overhaul Macy’s operations and unlock real estate value, mirroring similar activist actions in the retail industry.



Read more at CNBC: Macy’s ends buyout talks with Arkhouse and Brigade