×
2 449
Fashion Jobs
FOUR SEASONS RECRUITMENT
Wholesale Sales Manager
Permanent · LONDON
BOOHOO GROUP
Stock Team Manager - Twilight
Permanent · CRICK
REISS
Business Applications – Support Analyst
Permanent · LONDON
VF INTERNATIONAL
dc Inventory Team Leader
Permanent · COALVILLE
VF INTERNATIONAL
dc Training Specialist
Permanent · COALVILLE
VF INTERNATIONAL
Warehouse Area Manager
Permanent · COALVILLE
VF INTERNATIONAL
dc Team Leader
Permanent · COALVILLE
HEAD OFFICE
Category Strategy Manager
Permanent · BRACKNELL
AUTUMNPAPER LIMITED
Alexander Mcqueen Vip & Kol Manager
Permanent · LONDON
ESTEE LAUDER
Clinique - Consultant - Boots, Bluewater - 22.5 Hours, 3 Days - Part Time, Permanent
Permanent · Dartford
ESTEE LAUDER
Clinique - Consultant - Boots, Bluewater - 15 Hours, 2 Days - Part Time, Permanent
Permanent · Dartford
JOHN LEWIS
Loss Prevention Partner
Permanent · CHELMSFORD
BOOHOO GROUP
Senior Commercial Finance Analyst
Permanent · MANCHESTER
BOOHOOMAN
Senior Marketing Manager
Permanent · MANCHESTER
BOOHOO
Paid Search Manager
Permanent · MANCHESTER
DEBENHAMS
Marketplace Business Development Manager
Permanent · LONDON
DEBENHAMS
Marketplace Account Manager
Permanent · LONDON
DEBENHAMS
Marketplace Business Development Assistant
Permanent · LONDON
REISS
Buying Admin Assistant - Graduate Opportunity
Permanent · LONDON
HOMESENSE
Loss Prevention Officer - Full Time Tkmaxx/Homsesense Basingstoke
Permanent · Basingstoke
VIVIENNE WESTWOOD
Warehouse Operative
Permanent ·
VIVIENNE WESTWOOD
Legal Counsel
Permanent · LONDON
Ads
By
Reuters
Published
Mar 16, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Activist investor Starboard sells off Macy's stock - sources

By
Reuters
Published
Mar 16, 2017

Starboard Value LP, the activist hedge fund that had pressured Macy's Inc to separate its real estate from its retail business, has sold its stake in the U.S. department store operator, people familiar with the matter said on Wednesday.

The move gives Macy's incoming Chief Executive Officer Jeff Gennette more space to execute on the company's turnaround plan. It comes after an acquisition approach by Canada's Hudson's Bay Co, the owner of the Lord & Taylor and Saks Fifth Avenue retail chains, failed to materialize into a concrete offer for Macy's.


Reuters


The sources asked not to be identified because the matter is not public. Starboard, which owned almost 1 percent of Macy's as of the end of December, declined to comment. Macy's did not immediately respond to a request for comment.

Macy's had been reluctant to heed Starboard's call to extract cash from its real estate, including some of its trophy assets, such as its Herald Square department store in New York, the location for the Christmas movie "Miracle on 34th Street."

This is because it views the rent from sale leasebacks, in which it sells its real estate only to lease it back, as another form of debt.

To be sure, Macy's has made some small moves to monetize its real estate. These include a joint venture with real estate investment firm Brookfield Asset Management Inc for roughly 50 Macy's locations. Macy's is also shutting down several of its underperforming stores.

Macy's, which also owns luxury chain Bloomingdale's, is now in a period of transition as CEO Terry Lundgren is due to become executive chairman on March 23. He will be succeeded by Gennette, the company's president.

Reuters first reported earlier this month that Hudson's Bay's bid for Macy's stumbled because it could not line up equity financing.

Hudson's Bay is now considering a merger with debt-laden department store operator Neiman Marcus, though that deal is also fraught with challenges, sources said earlier this week.

Starboard owned approximately 3 million Macy's shares worth around $107.8 million as of the end of December, according to the fund's most recent public disclosure of its position. Macy's shares have dropped almost 60 percent since Starboard unveiled a position in the company in July 2015.

Starboard's retreat underscores the challenges facing the retail sector, as a glut of new stores combined with consumers increasingly turning to the internet for their shopping needs has led to many companies bleeding cash, and some even filing for bankruptcy.

At the Milken Institute Global Conference last May, Starboard CEO Jeffrey Smith admitted that his fund had invested in Macy's too early, when its shares were too richly priced.

"Sometimes you don't get the timing right," he said.

© Thomson Reuters 2022 All rights reserved.