11:04 AM EDT, 07/15/2024 (MT Newswires) -- Shares of Macy's (M) tumbled intraday Monday after the department store operator said that it terminated go-private discussions with Arkhouse Management and Brigade Capital due to financing uncertainty and value concerns.

The Macy's board unanimously voted to end the talks that have been ongoing since the investment firms' initial outreach in December 2023, after Arkhouse and Brigade failed to deliver a "fully financed and actionable proposal" by Macy's June 25 deadline. The retailer's shares declined 13% in Monday trade.

"At this time, after careful review, we have concluded that Arkhouse and Brigade's proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process," Macy's Lead Independent Director Paul Varga said in a statement.

In March, Arkhouse and Brigade raised their offer to acquire Macy's to $24 per share from their initial $21 bid. Macy's said Monday they again upped their offer in late June, to $24.80, but that it was within a range the Macy's board previously communicated was not compelling. Arkhouse and Brigade did not immediately respond to requests for comment from MT Newswires.

The retail giant said it expended hundreds of hours addressing diligence requests from the firms and provided thousands of documents "with a level of detail that went well beyond what is customarily required to obtain financing for a public company acquisition."

Macy's is now focusing on executing its transformation plan announced in February, which Varga said provides shareholders with "the best opportunity for value creation."

"While it remains early days, we are pleased that our initiatives have gained traction, reinforcing our belief that the company can return to sustainable, profitable growth, accelerate free cash flow generation and unlock shareholder value," Chief Executive Tony Spring said.

The strategy -- dubbed "A Bold New Chapter" -- aims to strengthen the Macy's nameplate, accelerate luxury growth, and simplify and modernize end-to-end operations. Macy's will share additional progress details next month when it reports second-quarter results.

Price: 16.32, Change: -2.78, Percent Change: -14.54