Originally Published: 22 JAN 24 07:21 ET

By Jordan Valinsky, CNN

New York (CNN) — Macy’s has rejected a $5.8 billion offer to take the 165-year-old retailer private, announcing late Sunday that the “unsolicited proposal lacks compelling value.”

Last month, Arkhouse Management, a real estate-focused investing firm, and Brigade Capital Management, a global asset manager, offered to buy the remaining Macy’s shares it doesn’t own at a 32% premium.

The company on Sunday responded to the proposal more than a month after it was offered, disclosing in a statement that its board of directors and management “has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade.”

Macy’s CEO Jeff Gennette said the proposal is “not actionable and that it fails to provide compelling value to Macy’s shareholders,” adding that the retailer continues “to be open to opportunities that are in the best interests of the company and all of our shareholders.”

Arkhouse, however, isn’t backing down. The firm responded to Macy’s late Sunday, saying that it sees a potential for a “meaningful increase to our original proposal if we are granted access to the necessary due diligence.”

The firm also cited Macy’s shares soaring 17% after the proposal was revealed in December, adding that Arkhouse believes “Macy’s investors support a privatization given the stock’s largest single-day gain in more than two years following media reports of our interest in acquiring the company.”

Macy’s (M) shares fell about 12% in the past month but bounced 2% higher in premarket trading.

Last week, Macy’s announced it was laying off about 3.5% of its workforce, or roughly 2,350 employees, and closing five stores as it continues to shrink its massive retail business amid the online-shopping era.

The company first opened in 1858 and now operates about 500 Macy’s branded stores, as well as 55 of the more upscale Bloomingdale’s chain.

Macy’s has attempted numerous strategies in recent years to revitalize its business, such as new brands and smaller stores, but the moves have not altered its long-term trajectory.

Its stock price has dropped 75% from a peak of $73 a share in 2015. Since then, it has closed nearly 300 stores — almost one-third — leaving about 700 across its brands.

CNN’s Nathaniel Meyersohn contributed to this report.

The-CNN-Wire