04:25 PM EDT, 03/19/2024 (MT Newswires) -- Macy's (M) suitors Arkhouse and Brigade Capital have started due diligence for a potential acquisition of the retailer after finalizing a confidentiality agreement, according to multiple media reports Tuesday.

The hedge fund investors will also be able to raise capital to fund the transaction after the agreement. Macy's initially rebuffed a $21-per-share offer from the firms, but relented last week after the suitors raised the bid to $24 and indicated it was negotiable, the reports said.

The company did not immediately respond to a request for comment from MT Newswire.

Macy's shares closed 1.4% higher on Tuesday.

Price: 21.52, Change: -0.02, Percent Change: -0.09