(Reuters) -Macy's has terminated discussions with Arkhouse Management and Brigade Capital, saying that their revised proposal to buy the department store chain lacks the certainty of financing and does not provide compelling value.

Shares of Macy's were down nearly 12% in premarket trading.

The company disclosed on Monday that the investor group had revised its offer on June 26 to buy the department store's stock it does not already own for $24.80 apiece, up from $24 per share offered in March.

The new offer price valued the company at $6.86 billion and was nearly a 43% premium to the stock's close on Dec. 8, when the news of the offer first emerged.

The deal talks came at a crucial time when Macy's, which traces its roots to a dry goods store set up in New York in 1858, has rolled out a turnaround plan under new CEO Tony Spring that focuses on job cuts and 150 store closures through 2026.

Macy's said on Monday the company's board intends for the management team to return its full focus to enhancing shareholder value through the execution of the turnaround plan.

The company had raised its annual profit forecast in May on the back of Spring's strategy that aims to save $100 million in costs this year, though sales remained under pressure.

U.S department store operators, including Macy's, Nordstrom and Kohl's, have grappled with sluggish demand for non-essential items due to decades-high inflation since the end of the pandemic.

Shares of Kohl's and Nordstrom were down nearly 2% each before the bell.

Arkhouse and Brigade Capital Management did not immediately respond to a Reuters request for comment.