Macy's Inc. is having trouble finding a suitor. Even its mall landlord Simon doesn't want to be involved in a possible takeover of the beleaguered department store chain.
Suitor Hudson's Bay Co. is trying to pull off a mega-merger that would bring Saks Fifth Avenue and Macy's under the same corporate umbrella. But it needs to raise some $10 billion to make a credible offer, and while a wealthy family is pitching in some capital, no institutional investor is interested in the deal.
Hudson's Bay's existing equity partners, which include Simon, don't want to deal with the negative publicity associated with such an acquisition. Simon is having trouble enough convincing public markets of the value of its trophy mall properties. Generating more "dying brick-and-mortar" headlines might not help.
Macy's has been trying to monetize its valuable real estate holdings as it seeks to cut costs and restructure to accommodate a more omni-channel retail environment. CEO Terry Lundgren, who is stepping down, feels the company's ongoing sales slump is due to turnaround soon.