Macy's Inc (NYSE:M) CEO Tony Spring faces a race against time to reverse the company's fortunes.
Two new members will join the CEO on the department store retailer's board amid its deliberations over whether to back his vision or sell to activist investors, reported CNBC.
The recent board appointments mark the resolution of a proxy battle with activist Arkhouse Management.
This follows ongoing attempts by Arkhouse and Brigade Capital Management to acquire the struggling American department store retailer, the report read.
In December, Arkhouse initiated a bid to purchase Macy's at $21 per share, aiming to privatize the company.
Despite being rejected, Arkhouse escalated its actions by proposing nine nominees to Macy's 15-member board and increasing its acquisition bid, CNBC added.
"The Macy's, Inc. Board is continuing to engage with Arkhouse and Brigade regarding their proposal to acquire the Company," the company said in a statement.
"The Board is open-minded about the best path to create shareholder value and is committed to continuing to take actions that it believes are in the best interests of the Company and all Macy's, Inc. shareholders," the company added.
The recent settlement for Macy's — an agreement to appoint two of Arkhouse's nine nominees to its board — may alleviate the company's burden and expenses of an extended campaign to garner support from shareholders.
The move, however, could also mean a step closer to ownership for Arkhouse and Brigade, whose focus on real estate and not retail has raised concerns about the future of Macy's.
While both Macy's and Arkhouse conveyed conciliatory messages, the battle for Macy's persists, CNBC added.
Arkhouse and Brigade's buyout bid could completely alter the retailer's trajectory. They reportedly initiated due diligence to examine the department store operator's finances and liabilities closely.
Price Action: M shares closed lower by 3.16% to $19.30 on Friday.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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