Activist hedge fund Starboard Value has dropped its Macy’s stock after pressuring the department store owner for months to monetize its real estate.
People familiar with the matter said Starboard, which owns nearly 1% of the company or roughly three million shares worth about $107.8M, sold its stake after an acquisition approach by Hudson’s Bay to buy Macy’s fell apart, Reuters reports. Experts said Macy’s resisted Starboard’s idea to monetize the bulk of its real estate because the company saw it as a short term solution that would ultimately only add more debt.
Analysts estimated Starboard unloaded its shares at a 60% loss, and said the activist’s departure will give Macy’s incoming CEO Jeff Gennette more room to implement his turnaround strategy.
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