Macy’s announced on Wednesday that it has settled its proxy fight with real estate investor Arkhouse, appointing two of the firm’s nominees to its 15-person board. Ric Clark and Rick Markee will join Macy’s board effective immediately. They’ll be part of the committee that’s in charge of overseeing and evaluating Arkhouse’s bid to take the department store private and making recommendations to the board on its acquisition proposal. The board additions come as Arkhouse makes strides in its efforts to take the 165-year-old department store private, a deal that Macy’s had previously resisted. The real estate investor seeks to take the company private, remove it from the rigors of the public market and monetize its real estate assets.
Total Retail’s Take: The tumultuous times at Macy’s Inc. continue. Management of the retail chain believe its current turnaround strategy will accelerate same-store sales growth and over time get the Macy’s store fleet into a healthier position for long-term growth. CEO Tony Spring outlined that strategy in a presentation last month at Shoptalk, which I reported on here. It does not share Arkhouse’s view that Macy’s future is solely tied to its real estate assets. Arkhouse said it views Macy’s as a “real estate company with an adjacent retail business” because it thinks the department store’s owned real estate is worth more than the current enterprise value of the company, according to a March research note.
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