7/8/2023 0 Comments Mackys shift exchange![]() It said the entire company was worth $33.7 billion, roughly double the price at the time, but the stock has plunged nearly 60 percent since then. The activist, which held a 1 percent stake as of the end of September, said the property was worth $21 billion, including $4 billion alone for the flagship Herald Square store on 34th Street in Manhattan. In July 2015, Starboard made a public presentation that said the stock market wasn’t properly valuing the real-estate assets inside Macy’s. Declining foot traffic in shopping malls as well as the ability for consumers to compare prices online before buying products has hurt department stores.Īt the same time, a bifurcation in shopping habits toward the highest and lowest ends has been bad for retailers like Macy’s that cater to midrange customers. ![]() and so-called fast-fashion chains such as Zara and Hennes & Mauritz AB. Department stores have been slow to adapt to a shift toward online shopping, buying goods from Inc. Macy’s was one of the brands owned by Federated, and the whole company was renamed Macy’s in 2007 as Lundgren eliminated regional brands like Burdines, Filene’s and Marshall Field’s.īut the retail sector has been pressured in recent years by a change in consumer habits. and May Department Stores Co., creating a national retail giant that today is the largest U.S. In 2005, Lundgren orchestrated the merger of the two biggest chains, Federated Department Stores Inc. Its recent travails mark a change in fortune for Macy’s, which once was a dominant player in retail that gobbled up competitors through a series of acquisitions. In addition to its flagship Macy’s stores, the Cincinnati company owns upscale department-store chain Bloomingdale’s. Macy’s later added a Starboard ally to its board.Īs of January, Macy’s operated more than 800 stores. Starboard Value LP took a stake and called on Macy’s to hive off its valuable real estate, which the activist investor says is worth more than $20 billion. It is facing mounting investor pressure to turn around its performance and reverse the stock drop. ![]() In January, Macy’s said it would slash more than 10,000 jobs and detailed plans to close dozens of stores after another weak holiday-sales season. Its stock has fallen more than 50 percent from the highest level it reached in 2015. Macy’s has struggled in recent years amid increasing competition from upstarts and as shopping habits change and consumers buy more over the internet. It could also bring in a partner.īut complicating a takeover, Macy’s is saddled with about $7.5 billion in debt. ![]() While its market value is dwarfed by that of Macy’s - $1.4 billion compared with $9.8 billion as of Friday morning - Hudson’s Bay could raise equity and debt against its real estate portfolio, which could be worth $14 billion, one of the people said. Hudson’s Bay is an acquisition-hungry owner of marquee names in retail including Lord & Taylor department stores and Saks Fifth Avenue. Shares initially rose so fast that trading was temporarily halted on the New York Stock Exchange. Shares of Macy’s jumped 6.4 percent to $32.69 Friday after the Wall Street Journal reported the talks. Other details of the talks are unclear and it is far from guaranteed there will be any deal. Talks between the companies are at a preliminary stage and also encompass other ways they could cooperate, one of the people said, adding that a deal for Macy’s real estate is also a possibility. department-store chain grapples with disappointing results and restive shareholders. about a takeover, people familiar with the matter said, as the biggest U.S.
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