Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Macy's Raises $4.5 Billion to Shore Up Funds as Stores Reopen

Shares of the company, which also owns Bloomingdale's, surged about 11 percent after the bell.
An empty Macy's parking lot | Source: Getty Images
By
  • Reuters

NEW YORK, United States — Macy's Inc said on Monday it raised a total of $4.5 billion, including $3.15 billion in new borrowings against its real estate assets, as the department store chain tries to navigate through the fallout from the Covid-19 pandemic.

Shares of the company, which also owns Bloomingdale's, surged about 11 percent after the bell.

"The high quality of our real estate portfolio positioned us well to execute this offering," Chief Executive Officer Jeff Gennette said in a statement.

Gennette said the funding gives the retailer sufficient flexibility and liquidity to steer the business for the foreseeable future.

ADVERTISEMENT

The company said it would be able to purchase new inventory as stores reopen and repay upcoming debts in fiscal 2020 and 2021.

Like other retailers, Macy's has been severely impacted from store closures due to the coronavirus health crisis that forced governments to announce lockdowns to curb the spread of the infection.

The raised funding includes a previously announced $1.3 billion in bond offering.

The funds from the offering and existing cash will be used to repay outstanding borrowings under an existing $1.5 billion unsecured credit agreement. The retailer said it has amended the $1.5 billion credit agreement to reduce the available credit commitment and modify the agreement's covenants.

By Nivedita Balu; Editor: Shinjini Ganguli.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

What a Fashion Company Is Worth Today

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


What’s the Plan at H&M?

The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections