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Macy’s rejects $5.8 billion buyout ahead of layoffs, store shutdowns

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Macy’s has rejected a $5.8 billion offer to take the iconic department store private, as it prepares to slash costs amid ongoing struggles

The “unsolicited proposal,” which was submitted last month by investing firm Arkhouse Management and its partner Brigade Capital Management, the firms would have paid $21.00 per each outstanding share to take the  company private. Financial firms have set their sights on the legendary retailer, believing the company, with its multibillion-dollar real estate portfolio, is undervalued in the stock market, an analyst told CBS MoneyWatch. 

The offer fell flat with Macy’s board members because it “lack[ed] compelling value,” the clothing giant said Sunday in a statement. The company also cited its concerns over the firms’ “ability to finance their proposed transaction.” 

Industrywide slump

The offer and its rejection come as Macy’s struggles to surmount an industrywide sales slump brought on by rising competition from online retailers. The company reported it saw $1.2 billion in profit on $24.4 billion in revenue during the last fiscal year, down from $1.6 billion in profits on $24.5 billion in revenue in 2021. 

More broadly, department store sales fell 1.5% over the first seven months of 2023, compared to a year prior, trade publication Modern Retail reported, citing U.S. Census data.

The retail industry continues to struggle with consumers’ snubbing of malls in favor of online shopping, leading to the collapse of stores such as Payless and Toys R Us and tens of thousands of layoffs.

The past year and a half has seen 2,000 retail store closures, with the likes of Foot Locker and Walmart shuttering locations as they look to save money. That trickle is set to turn into a flood over the next five years, according to Wall Street analysts. 

Years of chronic underperformance has weighed on Macy’s shares, making the company a relatively attractive acquisition target. 

Macy’s is pursuing several strategies to boost its valuation in the absence of a deal. The retailer signaled it would lay off 3.5% of employees this week, or roughly 2,350 employees, in addition to closing five of its stores. The cost-slashing measures are meant to enable the retailer to “deploy a new strategy to meet the needs of an ever changing consumer and marketplace,” the company told the AP last week. 

The strategy shift comes as the popularity of department stores and other brick-and-mortar retailers fades as consumers embrace online shopping.  In 2020, e-commerce sales increased by $244.2 billion, or 43%, from the year prior, according to the Annual Retail Trade Survey (ARTS) from the U.S. Census Bureau.  



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Trump to hold second rally at site of attempted assassination

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Trump to hold second rally at site of attempted assassination – CBS News


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Former President Donald Trump is returning to Butler, Pennsylvania, today to hold a rally. Twelve weeks ago, a would-be assassin opened fire on him there. Meanwhile, Vice President Kamala Harris is set to visit North Carolina to review federal relief efforts after Hurricane Helene.

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Eye Opener: At least 70 people killed in gang attack in Haiti, United Nations says

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Eye Opener: At least 70 people killed in gang attack in Haiti, United Nations says – CBS News


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The United Nations said at least 70 people have been killed in a gang attack in Haiti. Meanwhile, a 21-year-old Yazidi woman was rescued from Gaza after a decade. All that and all that matters in today’s Eye Opener.

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Floods, landslides struck parts of Bosnia as residents slept, leaving at least 16 dead and several missing

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A severe rainstorm struck Bosnia overnight Friday, killing at least 16 people in floods and landslides in several towns and villages in central and southern parts of the country, with surging waters rushing into people’s homes as they were sleeping.

Rescue services in the south said several people were missing and called on volunteers and the army to assist as roads were closed and houses left without electricity.

Josip Kalem, a resident of Fojnica, one of the towns hit by the floods, said his dog’s barking woke him up at around 4 a.m. When he came out on the terrace, he saw the water rising rapidly.

“I came down, woke up my wife, and we looked around, we could not get out of the house. We saw more and more water coming in,” he said. “All of a sudden, the water was flooding the garage, basement, my car — everything. The water swept it all away, including my dog. Flood took it downstream.”

Andja Milesic, another resident of Fojnica, also said she was caught by surprise in the middle of the night.

“When I woke up, my bedroom floor was already soaked. I walked into the hallway — water was everywhere — the living room, everywhere,” she said. “It was horrible.”

APTOPIX Bosnia Flooding
A car is submerged in flood waters outside an apartment building in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

Armin Durgut / AP


Darko Juka, a spokesman for the local administration, said at least 14 people had died in and around the southern town of Jablanica. Officials later said two more bodies have been found.

“Those are the ones who have been discovered by rescuers,” he said. “We still don’t know the final death toll.”

“I don’t remember such a crisis since the war,” Juka said referring to the 1992-95 war in Bosnia that left the country in ruins. “The scale of this chaotic situation is harrowing.”

Defense Minister Zukan Helez told N1 regional television that troops have been engaged to help and that the casualties were reported.

Helez said that “hour after hour we are receiving news about new victims. … Our first priority is to save the people who are alive and buried in houses where the landslides are.”

A pregnant woman lost her baby after she was rescued from the floods and transferred to a hospital in the regional center of Mostar. Authorities said doctors were fighting for her life as well. Separately, a child was successfully rescued and hospitalized, local officials said.

Rescue services in the towns of Jablanica and Kiseljak said the power was off overnight and mobile phones lost their signal.

The Jablanica fire station said that the town was completely inaccessible because roads and trainlines were closed.

“The police informed us that the railroad is also blocked,” the state rescue service said in a statement. “You can’t get in or out of Jablanica at the moment. Landline phones are working, but mobile phones have no signal.”

It urged people not to venture out on the flooded streets.

Human-caused climate change increases the intensity of rainfall because warm air holds more moisture. This summer, the Balkans were also hit by long-lasting record temperatures, causing a drought. Scientists said the dried-out land has hampered the absorption of floodwaters.

Bosnia Flooding
Apartment buildings are reflected at a flooded soccer field after a heavy rain in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

Armin Durgut / AP


Drone footage broadcast on Bosnian media showed villages and towns completely submerged under water, while videos on social networks showed dramatic scenes of muddy torrents and damaged roads.

One of the busiest roads linking Sarajevo with the Adriatic coast via Jablanica was swept into a river, together with a railway line in a huge landslide, according to photos.

“Many people are endangered because of big waters and landslides. There is information about victims and many injured and missing persons,” said the civic protection service.

Authorities urged people to stay on the upper floors of their homes. Reports said surging waters swept away domestic animals and cars as the water swiftly filled up lower floors of buildings.

The heavy rains and strong winds were also reported in neighboring Croatia, where several roads were closed and the capital of Zagreb prepared for the swollen Sava River to burst its banks.

Heavy winds have hampered traffic along the southern coast of the Adriatic Sea, and flash floods caused by heavy rain threatened several towns and villages in Croatia.

Floods caused by torrential rains were also reported in Montenegro, south of Bosnia, where some villages were cut off and roads and homes flooded.

In 2014, floodwaters triggered more than 3,000 landslides across the Balkans, laying waste to entire towns and villages and disturbing land mines leftover from the region’s 1990s war, along with warning signs that marked the unexploded weapons.



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