Arkhouse Management Co. LP (together with its affiliates, “Arkhouse”, “we” or “us”), which owns a significant stake in Macy’s, Inc. (“Macy’s” or the “Company”) (NYSE: M), today issued the following statement from Arkhouse Managing Partners Gavriel Kahane and Jonathon Blackwell:

“In recent weeks, Arkhouse and our partner, Brigade Capital Management, LP, have engaged privately with Macy’s regarding a potential acquisition of the Company. Our investor group can confirm that we collectively have a significant stake in Macy’s through Arkhouse-managed funds and made a proposal to acquire the Company for $21.00 per share in cash on Dec. 1, 2023. The proposed purchase price represents a 32.4% premium to the unaffected stock price and a 56.8% premium to the Company’s 30-day volume weighted adjusted stock price as of Nov. 30, 2023.

We encourage the Company to respond to us this week, as it indicated, without further delaying substantive discussions. We see the potential for a meaningful increase to our original proposal if we are granted access to the necessary due diligence and, to that end, have offered to sign a mutual non-disclosure agreement to conduct this due diligence. We have conviction in the long-term success of Macy’s but believe that its potential will only be realized as a private company. We believe Macy’s investors support a privatization given the stock’s largest single-day gain in more than two years following media reports of our interest in acquiring the Company. In the absence of further updates, Macy’s shares have fallen — including after the Company’s announcement last Thursday of a broad-based restructuring.

Jefferies Group LLC has provided a highly confident letter supporting our ability to raise the necessary funds for the transaction. Following conversations between our respective advisors, Macy’s advisors confirmed that they had no further questions regarding our financing. We urge Macy’s to engage expeditiously in good faith discussions with the goal of achieving a mutually agreeable transaction that can provide superior value to stockholders. We are highly motivated to consummate an acquisition of Macy’s and are prepared to pursue all necessary steps, including direct engagement with stockholders, to achieve this goal.”

Advisors

Cadwalader, Wickersham & Taft LLP is serving as legal counsel and Longacre Square Partners is serving as strategic advisor to Arkhouse. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel and Jefferies Group LLC is serving as financial advisor to the buyer group.

About Arkhouse

Arkhouse takes a private equity approach to its public market investing, and employs selective shareholder engagement strategies, to unlock unrealized equity value caused by the mispricing of real assets in the public market. Arkhouse’s team of professionals have invested in a diverse range of asset classes and throughout the capital stack. This broad experience ensures a continuous flow of new investment opportunities and a creative approach to the sourcing, structuring, closing and management of those investments.

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