Macy’s reportedly receives 5.8 billion dollar buyout

American department store chain Macy’s is understood to have received a 5.8 billion dollar buyout offer, valuing the retail giant at 21 dollars per share.

Real estate investment firm Arkhouse Management and asset management firm Brigade Capital Management are believed to be those behind the offer, according to sources for The Wall Street Journal (WSJ), which initially reported the news.

The duo are also said to be willing to put forward a larger bid based on due diligence, reports for the media outlet added, building on the premium they would already be paying for the company.

It was further reported that the Macy’s board had met to discuss the proposal, yet it is currently not clear how the offer is being viewed.

It comes as Arkhouse and Brigade were said to have believed that Macy’s was undervalued in the public markets, despite the department store struggling to break out of a sales slump over the past year.

While the company has put in efforts to turnaround its performance, sales declined 7 percent in the first quarter of the year amid falling consumer demand.

Commenting on the results at the time, Macy’s CEO and chair Jeff Gennette said: “We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories.”

Further efforts could be seen in the company’s latest strategy to introduce small-format stores to its retail network, a concept it recently said it would be expanding with 30 new locations through to autumn 2025.