Investor Starboard said it supports Macy’s and its cost-cutting plans, but considers that following through with real-estate deals to add more cash to its reserves would be a good move.
Among the Macy’s real estate assets that could add cash to the store is the company’s flagship Herald Square store in New York.
“We believe that a JV, or series of JVs, can crystallize the value of Macy’s real estate while bringing in a partner with substantial capital and real estate expertise that will enable the JVs to grow and diversify their real estate holdings,” Starboard managing member Jeffrey Smith wrote.
“The viewpoint expressed by Starboard is consistent with actions already under way at Macy’s … to explore joint venture and other potential relationships related to the company’s real estate and to improve our profitability from operations,” Macy’s said in an email on Monday.
M stock is up 5.5% Monday.
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