More Activist Investors Target Macy’s

Macy’s Inc. (New York) is again under fire from activist shareholders seeking a major shakeup of the famed department store chain, report a variety of news sources, including CNBC. This time the suitors are Barington Capital and Thor Equities, which want the retailer to cut spending, explore selling its luxury brands (Bloomingdale’s and BlueMercury) and restructure its real estate portfolio (by creating a separate subsidiary that would charge rent to Macy’s parent company assessing how to maximize value from those assets).

Though the two investors said they have taken a stake in the retailer’s stock, they did not disclose its size. This marks the fourth activist push the struggling department store has faced in the last decade, CNBC noted.

Macy’s, for its part, acknowledged receipt of the Barington/Thor proposals, releasing a statement saying it planned to continue following a previously announced strategy that included closing struggling namesake stores and investing more in the stronger parts of its business.

“We remain confident in our Bold New Chapter strategy,” Macy’s said in the statement. “We look forward to engaging with our shareholders, including Barington and Thor, … as we further advance our initiatives and execute toward our long-term goals.”

Barington, CNBC noted, has mounted campaigns at other big consumer names, including Mattel, The Children’s Place, Hanes and Steve Madden, while Thor Equities is a retail-focused private equity firm and was part of the buyout group that acquired Hurley several years ago.