Macy’s Appoints Activist Investor Board Picks, Ending Proxy Fight

Macy’s (M) on Wednesday ended a proxy fight by agreeing to calls for a board shakeup by activist investor Arkhouse Management.

The move is expected to bring the biggest U.S. department store chain closer to being taken private by Arkhouse and its partner, Brigade Capital Management.

Macy’s announced that it had appointed a pair of new independent directors, Richard Clark and Richard Markee, both of whom were Arkhouse nominees. The retailer added that with that decision, Arkhouse has agreed to withdraw its candidates for board seats and the shareholder proposals it wanted voted on at Macy’s annual meeting of shareholders.

The company noted that it is “continuing to engage with Arkhouse and Brigade regarding their proposal to acquire the Company.” It explained that Clark and Markee would be members of the Finance Committee, which will “oversee the evaluation of and make recommendations to the full Board regarding the acquisition proposal.” Macy’s pointed out it had previously entered into an agreement with Arkhouse and Brigade to facilitate their access to confidential due diligence information, and that process remains ongoing.

In December, Macy’s leadership turned down a $21-per-share bid by Arkhouse and Brigade to take the retailer private, leading to the proxy battle.

Shares of Macy’s were little changed as of 1:15 p.m. ET Wednesday and are down less than 1% for 2024.