Activist investor pushes Macy's to expand Bloomingdale's business, create real estate unit

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Activist Investors,Bloomingdales,Commercial Real Estate

Barington Capital partnered with real estate firm Thor Equities on its investment, according to a presentation for Macy’s shareholders.

Activist investor Barington Capital on Monday revealed a stake in Macy’s and pushed the retailer to consider options for its Bloomingdale’s and Bluemercury businesses and create a separate real estate unit within the company.The exact size of Barington’s hold in Macy’s is unclear.

The activist investors have pushed Macy’s to reduce capital expenditures to between 1.5% and 2% of total sales, down from around 4% currently, as well as repurchase a minimum of $2 billion to $3 billion in stock over the next three years.

It added two new independent directors to its board in April to end a proxy fight with Arkhouse Management, which was encroaching on a board takeover.Starboard Value in 2015 prodded the chain to spin-off its real estate assets, including its flagship Herald Square storefront., has been working to turn around the company’s downtrodden sales.

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