Barington and Thor Push for Changes at Macy's

Activist investor Barington Capital and real estate firm Thor Equities are urging Macy's to create a real estate subsidiary, reduce capital expenditures, and explore strategic options for its Bloomingdale's and Bluemercury chains to address its declining stock value. They estimate Macy's real estate is worth between $5 billion and $9 billion, which is more than the company's current market capitalization. The proposal includes cutting capital expenditures to 1.5% to 2% of total sales, down from the current 4%, and repurchasing $2 billion to $3 billion in stock over the next three years. Barington and Thor believe these changes could yield a 150% to 200% return for shareholders and are seeking board representation. Macy's shares have fallen approximately 17% this year, and the company is delaying its full quarterly results due to uncovered financial discrepancies. The proposal comes amidst Macy's continuing struggles with declining sales and competition from e-commerce.