Macy's ends takeover talks with Arkhouse and Brigade citing lack of certainty over financing

Macy's is terminating its monthslong buyout talks with two investment firms, citing a substandard offer and the lack of certainty over financing.

In announcing the end of negotiations on Monday, Macy’s alleged that Arkhouse Management and Brigade Capital Management did not meet its request for information by a June 25 deadline, including the highest purchase price they were prepared to pay and details about how the revised deal would be financed.

Instead of delivering an “actionable proposal," Macy’s said Arkhouse and Brigade on June 26 — one day past the deadline — submitted what the suitors called a “check-in” letter expressing an interest in acquiring all of Macy’s outstanding shares for $24.80 in cash. Macy’s said that offer was within a range that its board had previously told Arkhouse and Brigade was “not compelling.”

Macy’s shares tumbled 11.7% to close Monday at $16.85.