Another interesting read
https://finance.yahoo.com/news/exclusive-macys-taps-lazard-bolster-030410698.html
5 replies (most recent on top)
M hired Lazard to explore options to improve its finances. It also hired restructuring lawyers Kirkland & Ellis.
M closed its physical locations due to the coronavirus. This caused the company to lose the majority of its sales.
M has $3.9 billion in obligations due in less than one year. If it cannot sell its $5.2 billion in inventory then it may need outside funding.
M's debt is already considered junk.
New capital could be dilutive to the stock.
Sell M.
Circle the wagons!
If they hired Lazard, they are desperate. Lord & Taylor and Barney’s all did the same thing and they are toast.
They brought all this on themselves. Macy took over good department stores and replaced them with overpriced discount stores. They did nothing to connect with shoppers in the markets they took over. Macy has been closing stores and cutting costs to stay afloat, but didn't do anything to make their stores an attraction. No loss if Macy closes because they already destroyed popular regional stores. WAY TO FLOP!
They can spin off the real estate as a separate company and start to borrow against it. They could file for bankruptcy to get out of those leased stores and get new capital.
Either way they will be leaner and meaner.