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.”
The company had rejected the offer from Arkhouse and Brigade Capital on concerns over valuation, while it continues discussions for more information on deal financing. The push for board seats comes as the Bloomingdale's parent struggles with weak demand as customer cut back spending due to elevated inflation and high borrowing costs. "Arkhouse and Brigade have yet to provide any financing details . of their proposal despite multiple opportunities to do so and instead . Arkhouse has chosen to launch a proxy contest," Macy's said.