Macy’s is settling a proxy dispute with activist Arkhouse, two executives add

trading house Macy’s on Wednesday announced that it had ended a proxy dispute with real estate investor Arkhouse and that it could add two latest directors to its 15-person board.

The reshuffle brings Macy’s closer to a deal that would bring privacy to the 165-year-old department store.

Ric Clark, a former Brookfield executive, and Rick Markee will join Macy’s board of directors, effective immediately. Markee is also a board member of the discounter Five below. Both Clark and Markee were nominated for Arkhouse.

“The board is open to the best path to create value for shareholders,” the corporate said.

Macy’s shares fell about 2% early Wednesday.

Macy’s also said it provided confidential business information to a group of investors led by Arkhouse because the two sides negotiated the terms of a possible sale. Both latest directors can be members of the committee evaluating Arkhouse’s offer to purchase the corporate.

Arkhouse first submitted a suggestion to take over the retailer in 2023. The investor, working with Brigade Management, has since then repeatedly increased its offer. Then in February, the activist-turned-investment firm launched a proxy fight at the corporate by hiring nine executives.

The appointment of Clark and Markee “will ensure that our discussions continue to be constructive and that our proposal is taken seriously and expeditiously,” said Arkhouse managing partners Jonathon Blackwell and Gavriel Kahane.

The iconic retailer has been struggling for nearly a decade as consumers quickly turned to online shopping and away from department shops. In February, Macy’s announced it could close about 150 of its roughly 500 stores, just weeks after CEO Tony Spring took the highest job.

It has laid off 1000’s of individuals in recent times as the corporate grapples with a dramatically modified landscape.

Macy’s has attracted the eye of activists before. Starboard Value, a recognized investor within the space market, took up a position on this company in 2015, only to sell it two years later after the failure of the potential takeover.

Arkhouse’s offer is different from the corporate’s previous offers. The real estate investor seeks to take the corporate private, removing it from the trials of the general public market and giving management time to streamline and right-size a company that also has a significant real estate portfolio.