Two Macy's, Inc.'s (NYSE:M) investors are plotting a $5.8 billion buyout of the department store chain as it grapples with competition from online rivals. Arkhouse Management Co., LP and Brigade Capital Management, LP have reportedly submitted an offer to buy Macy's shares that they do not already own. Their offer of $21 (£17) per share represented a 32% premium when made on Dec.

1, valuing the company at around $5.8 billion. Shares jumped as much as 20% when markets opened on December 11, 2023 to just under $21. However, this remains well below the peak of almost $70 a share that Macy's traded at in 2015 before the emergence of online giants such as Amazon hammered sales.

The two investors already have a significant stake in Macy's and have discussed the buyout proposal with management. Talks subsequently prompted a board meeting to consider the offer, although it is not yet clear whether directors support the deal. Arkhouse and Brigade believe Macy's is undervalued on public markets and have indicated a willingness to increase their offer subject to due diligence, according to The Wall Street Journal.

Macy's, Arkhouse and Brigade declined to comment.