According to Women’s Wear Daily, struggling, Cincinnati-based retailer Macy’s may be the target of a buyout. Despite grand plans to become a nationwide discount department store, Macy’s has been struggling to make any money.
Last week, the Cincinnati-based retailer posted a larger-than-expected 2.7% drop in same-store sales for June from a year ago, warned of flat to lower sales for July and cut its profit forecast for the second quarter by 33% to 20 to 30 cents a share, excluding merger expenses.
Nearly two years after its $17 billion acquisition of the May Department Store Co., Macy’s is still struggling to integrate the new stores and wrestling with how to retain customers of such upscale chains as Marshall Fields even as it overhauls its merchandise strategy to target lower-end consumers.
Macy’s has previously been subjected to the leveraged buyout treatment… it resulted in a bankruptcy filing in 1990.
Personally, we hate Macy’s (and are irrationally bitchy about them) for taking away Marshall Field’s, a store with decent customer service that we actually liked… but that’s just us. Do you guys like Macy’s?
Macy’s: In the Buyout Bin? [BusinessWeek]