<SEC-DOCUMENT>0001104659-24-030676.txt : 20240305
<SEC-HEADER>0001104659-24-030676.hdr.sgml : 20240305
<ACCEPTANCE-DATETIME>20240304213043
ACCESSION NUMBER:		0001104659-24-030676
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240305
DATE AS OF CHANGE:		20240304

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Macy's, Inc.
		CENTRAL INDEX KEY:			0000794367
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DEPARTMENT STORES [5311]
		ORGANIZATION NAME:           	07 Trade & Services
		IRS NUMBER:				133324058
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0203

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13536
		FILM NUMBER:		24718018

	BUSINESS ADDRESS:	
		STREET 1:		151 WEST 34TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10001
		BUSINESS PHONE:		5135797585

	MAIL ADDRESS:	
		STREET 1:		151 WEST 34TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10001

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FEDERATED DEPARTMENT STORES INC /DE/
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	R H MACY & CO INC
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MACY ACQUIRING CORP
		DATE OF NAME CHANGE:	19861124

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Arkhouse Value Fund I LP
		CENTRAL INDEX KEY:			0001996566
		ORGANIZATION NAME:           	
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		106 WEST 56TH STREET
		STREET 2:		17TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		646-849-9669

	MAIL ADDRESS:	
		STREET 1:		106 WEST 56TH STREET
		STREET 2:		17TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>tm247843d2_dfan14a.htm
<DESCRIPTION>DFAN14A
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin: 2pt auto 1pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SCHEDULE 14A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Rule 14a-101)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SCHEDULE 14A INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Proxy Statement Pursuant to Section&nbsp;14(a)
of</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 1pt; margin-bottom: 1pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by a Party other than the Registrant&nbsp;<FONT STYLE="font-family: Wingdings">&#120;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Check the appropriate box:</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#120;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material Pursuant to &sect;240.14a-12</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>MACY&rsquo;S, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Name of Registrant as Specified In Its Charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; background-color: #FEFEFE"><B>Arkhouse Value Fund
I LP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Value Fund II LP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Co-Investment III LP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Equity Investors LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Equities Fund LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Value Fund GP LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Co-Investment III GP LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Real Estate Activism Fund MM LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Manager LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse Management Co. LP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Arkhouse GP LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Jonathon Blackwell</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Gavriel Kahane</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>George Hebard</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Richard Clark</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Richard L. Markee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Mohsin Y. Meghji</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Mitchell Schear</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Nadir Settles</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Gerald L. Storch</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Sharen J. Turney</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Andrea M. Weiss</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Isaac Zion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Name of Person(s) Filing Proxy Statement, if
other than the Registrant)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payment of Filing Fee (Check the appropriate box):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings">&#120;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">No fee required.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Fee paid previously with preliminary materials.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin: 2pt auto 1pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">Arkhouse Management Co. LP, together with
the other participants named herein (collectively, the &ldquo;Participants&rdquo;), expects to file a preliminary proxy statement and
accompanying proxy card with the United States Securities and Exchange Commission to be used to solicit proxies for matters including
the election of its slate of director nominees to the Board of Directors (the &ldquo;Board&rdquo;) of Macy&rsquo;s,&nbsp;Inc. (&ldquo;Macy&rsquo;s&rdquo;,
or the &ldquo;Company&rdquo;) at the 2024 annual meeting of shareholders (the &ldquo;Annual Meeting&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">On March&nbsp;4, 2024, &nbsp;Mr. Gavriel Kahane, Managing Partner of
Arkhouse Management Co. LP, and a participant named herein, was interviewed by Leslie Picker, Courtney Reagan and Dominic Chu on CNBC.
The full text of the interview transcript follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Leslie Picker</B>: So the big news is that you bumped up to a 51%
premium to the unaffected stock price from a few months ago. But share's still trading about three and a half dollars below that price
tag. You said in an earlier release that the board was unwilling to engage due to a lack of confidence surrounding financing as well as
the purchase price, and I'm wondering if you believe that this newest offer as well as any developments on financing have closed the gap
there.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Gavriel Kahane</B>: Yeah. So, firstly, thank you so much for having
me. Leslie, Courtney, good to see you both. The company said they were unwilling to engage with us on financing. I don't know if that's
the real reason or not. We can only guess as to the specific reasons they weren't engaging. In fact, in previous conversations with them
with respect to financing, they made it very clear to us that they didn't have any additional questions on our financing. And we hope
that the additional information that we've given them, notwithstanding their lack of specific requests, has put to the side any questions
now. But, to the extent they have any additional questions, we urge them as we have previously to please let us know specifically what
they would like for us to address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">With respect to price, as we stated then when we initially made the
offer, we had a high degree of confidence and optimism that we could increase our offer if we were granted access to confirmatory diligence.
The company was unwilling to provide us with access to said diligence but they did release Q4 earnings and that gave us more information,
allowing us to drop some of our conservative assumptions in our underwriting and in turn increase our price to now $24 in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Leslie Picker</B>: Macy's, for its part, said in a statement that
it does not intend to comment further on the Arkhouse and Brigade's revised unsolicited nonbinding proposal until the board has completed
its review. But kind of going into the financing, you say that Fortress and OneIM have joined as equity capital partners for 50% of the
financing. You say you have that but what about the rest in terms of presumably debt financing that you'll need to get to this purchase
price and how does the $24 a share change the dynamic as it pertains to this financing?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Gavriel Kahane</B>: So the debt for this transaction is at a relatively
low conservative level of 50%. I think, for historic comparable transactions, that is much less financing than typical, and we're pleased
that we can give that certainty to shareholders. The debt is coming from money center banks, a number of whom have expressed very strong
interest in getting diligence alongside us and moving towards firm commitments and closing with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">With respect to how 24 changes that financing, as mentioned, our ability
to come up in our offer was really driven by us being able to shed some of our very conservative assumptions in our underwriting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Courtney Reagan</B>: Gavriel, obviously you mentioned that we now
know a little bit more about Macy's financial position given that they did just put out their earnings, but I know a lot of, part of the
value that you've seen in the retailer when we've spoken previously does have to do with the real estate. As part of the announcement
and the strategy under new CEO Tony Spring going forward, they do intend to close about 150 of their stores. That's about 30% of their
fleet. So how does that change, if at all, your thesis about the value of the real estate?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Gavriel Kahane</B>: Well, hopefully not at all. Hopefully, we get
to close on this transaction and to give shareholders that premium long before the company under its existing leadership moves to close
stores. Our plan is not conditioned on store closures. It is not a part fundamentally of our business plan at all. In fact, we think the
real estate is so valuable in large part because it's occupied by Macy's.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Courtney Reagan</B>: So then I guess another question too is do
you really want to run Macy's? If you were successful, would you continue to run it as a retailer or would you just try to sell off that
real estate and get the value therein?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Gavriel Kahane</B>: So very much we want to continue running the
company. And, again, the value of the real estate is really fundamentally driven by its great tenant which we think can be that much more
credit worthy under new leadership. So the two are sort of fundamentally enmeshed with each other. There is a very communalistic relationship
between the real estate and the retailer that sits in it. And we think the real estate can become that much more valuable by putting on
these necessary changes on an operational level post privatization in the private markets, as compared to trying to execute on really
fundamental business changes in the public markets where it's much more difficult to.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Dominic Chu</B>: And Gavriel, it's Dom. I wonder just if you could
take us through what you think Macy's/Bloomingdale's/the entire portfolio looks like operationally after you've hypothetically done this
deal three to five years from now.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Gavriel Kahane</B>: Hopefully, a whole heck of a lot stronger. Our,
again, sincere hope is that this is not a sort of going concern for shareholders, but very much that Macy's is a stable and growing company
that can live for decades and potentially another 150 years. So we think that needs to happen behind the curtain away from the public
markets. We think that current management has really been largely solving for the quarter, and when you're so focused on that near-term
execution, it's really almost impossible to ensure your long-term viability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><B>Courtney Reagan</B>: Gavriel Kahane, Leslie Picker, thank you both
very much for joining us. I'm sure we will be covering this more as things get underway further. Thank you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE"><B>Cautionary Statement
Regarding Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">This press release
does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein in any state to any person.
The information herein contains &ldquo;forward-looking statements&rdquo;. Specific forward-looking statements can be identified by the
fact that they do not relate strictly to historical or current facts and include, without limitation, words such as &ldquo;may,&rdquo;
 &ldquo;will,&rdquo; &ldquo;expects,&rdquo; &ldquo;believes,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;plans,&rdquo; &ldquo;estimates,&rdquo;
 &ldquo;projects,&rdquo; &ldquo;potential,&rdquo; &ldquo;targets,&rdquo; &ldquo;forecasts,&rdquo; &ldquo;seeks,&rdquo; &ldquo;could,&rdquo;
 &ldquo;should&rdquo; or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements
that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties
and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct or that any of the objectives,
plans or goals stated herein will ultimately be undertaken or achieved. If one or more of such risks or uncertainties materialize, or
if Arkhouse&rsquo;s underlying assumptions prove to be incorrect, the actual results may vary materially from outcomes indicated by these
statements. Accordingly, forward-looking statements should not be regarded as a representation by Arkhouse that the future plans, estimates
or expectations contemplated will ever be achieved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Certain Information Concerning the Participants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">Arkhouse Value Fund
I LP (&ldquo;<U>Arkhouse Value Fund I</U>&rdquo;) and the other Participants (as defined below) expect to file a preliminary proxy statement
and accompanying universal proxy card with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) to be used to solicit proxies
for, among other matters, the election of its slate of director nominees to the Board at the Annual Meeting. Promptly after filing its
definitive proxy statement with the SEC, Arkhouse Value Fund I LP expects to mail the Participants&rsquo; definitive proxy statement and
accompanying universal proxy card to each stockholder entitled to vote at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">The participants in
the proxy solicitation are Arkhouse Value Fund I, Arkhouse Value Fund II LP (&ldquo;<U>Arkhouse Value Fund II</U>&rdquo;, and together
with Arkhouse Value Fund I, the &ldquo;<U>Arkhouse Value Funds</U>&rdquo;), Arkhouse Co-Investment III LP (&ldquo;<U>Arkhouse Co-Investment
III</U>&rdquo;), Arkhouse Equity Investors LLC (&ldquo;<U>Arkhouse Equity Investors</U>&rdquo;), Arkhouse Equities Fund LLC (&ldquo;<U>Arkhouse
Equities Fund</U>&rdquo;, and together with the Arkhouse Value Funds, Arkhouse Co-Investment III and Arkhouse Equity Investors, the &ldquo;<U>Arkhouse
Funds</U>&rdquo;), Arkhouse Value Fund GP LLC (&ldquo;<U>Arkhouse Value Fund GP</U>&rdquo;), Arkhouse Co-Investment III GP LLC (&ldquo;<U>Arkhouse
Co-Investment III GP</U>&rdquo;), Arkhouse Real Estate Activism Fund MM LLC (&ldquo;<U>Arkhouse MM</U>&rdquo;), Arkhouse Manager LLC (&ldquo;<U>Arkhouse
Manager</U>&rdquo;), Arkhouse Management Co. LP (&ldquo;<U>Arkhouse Management</U>&rdquo;), Arkhouse GP LLC (&ldquo;<U>Arkhouse GP</U>&rdquo;),
Jonathon Blackwell, Gavriel Kahane and George Hebard (all of the forgoing persons, together, the &ldquo;<U>Arkhouse Parties</U>&rdquo;),
along with the nominees (the &ldquo;<U>Nominees</U>&rdquo;) Richard Clark, Richard L. Markee, Mohsin Y. Meghji, Mitchell Schear, Nadir
Settles, Gerald L. Storch, Sharen J. Turney, Andrea M. Weiss and Isaac Zion (the Arkhouse Parties and the Nominees, collectively, the
 &ldquo;<U>Participants</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">As of the date hereof,
Arkhouse Funds in the aggregate directly own or have the right to acquire within 60 days 7,829,209 shares of common stock of Macy&rsquo;s,
par value $0.01 per share (the &ldquo;<U>Common Stock</U>&rdquo;) and hold long positions in cash-settled American call options referencing
a further 17,014,610 shares of Common Stock, and Mr.&nbsp;Hebard directly owns or may be deemed to beneficially own a further 146,500
shares of Common Stock in each case as further detailed below. As of the date hereof, (i)&nbsp;Arkhouse Value Fund I<B>&nbsp;</B>directly
holds 5,947,918 shares of Common Stock, comprised of 1,000 shares of Common Stock held in record name and 5,946,918 shares of Common
Stock held in &ldquo;street name&rdquo;, and holds long positions in cash-settled American call options referencing a further 15,947,798
shares of Common Stock; (ii)&nbsp;Arkhouse Value Fund II directly holds 766,436 shares of Common Stock in &ldquo;street name&rdquo;,
and holds long positions in cash-settled American call options referencing a further 1,066,812 shares of Common Stock; (iii)&nbsp;Arkhouse
Co-Investment III directly holds 447,898 shares of Common Stock in &ldquo;street name&rdquo;, (iv)&nbsp;Arkhouse Equity Investors directly
holds 70,527 shares of Common Stock in &ldquo;street name&rdquo;; (v)&nbsp;Arkhouse Equities Fund directly holds 416,430 shares of Common
Stock in &ldquo;street name&rdquo;, and also directly holds 1,800 American call options currently exercisable for 180,000 shares of Common
Stock; (vi)&nbsp;Arkhouse Value Fund GP, as the general partner of each of the Arkhouse Value Funds, may be deemed to beneficially own
all of the 6,714,354 shares of Common Stock beneficially owned in aggregate by the Arkhouse Value Funds; (vii)&nbsp;Arkhouse Co-Investment
III GP, as the general partner of Arkhouse Co-Investment III, may be deemed to beneficially own all of the 447,898 shares of Common Stock
beneficially owned by Arkhouse Co-Investment III; (viii)&nbsp;Arkhouse MM, as the manager of Arkhouse Equities Fund, may be deemed to
beneficially own all of the 596,430<B>&nbsp;</B>shares of Common Stock (including the 180,000 shares of Common Stock underlying the 1,800
American call options held by Arkhouse Equities Fund) beneficially owned by Arkhouse Equities Fund; (ix)&nbsp;Arkhouse Manager, as the
managing member of Arkhouse MM and manager of Arkhouse Equity Investors, may be deemed to beneficially own all of the 596,430<B>&nbsp;</B>shares
of Common Stock beneficially owned by Arkhouse MM and all of the 70,527 shares of Common Stock beneficially owned by Arkhouse Equity
Investors; (x)&nbsp;Arkhouse Management, as the investment manager to each of the Arkhouse Funds, may be deemed to beneficially own all
of the 7,829,209 shares of Common Stock (including the 180,000 shares of Common Stock underlying the 1,800 American call options held
by Arkhouse Equities Fund) beneficially owned in aggregate by the Arkhouse Funds; (xi)&nbsp;Arkhouse GP, as the general partner of Arkhouse
Management, may be deemed to beneficially own all of the 7,829,209 shares of Common Stock (including the 180,000 shares of Common Stock
underlying the 1,800 American call options held by Arkhouse Equities Fund) beneficially owned in aggregate by Arkhouse Management; (xii)&nbsp;Mr.&nbsp;Blackwell,
as the managing member of Arkhouse GP, Arkhouse Co-Investment III GP, Arkhouse Value Fund GP and Arkhouse Manager, may be deemed to beneficially
own all of the 7,829,209<B>&nbsp;</B>shares of Common Stock (including the 180,000 shares of Common Stock underlying the 1,800 American
call options held by Arkhouse Equities Fund) beneficially owned in aggregate by Arkhouse GP, Arkhouse Co-Investment III GP, Arkhouse
Value Fund GP and Arkhouse Manager; (xiii)&nbsp;Mr.&nbsp;Kahane, through his status as a member of Arkhouse GP, Arkhouse Co-Investment
III GP, Arkhouse Value Fund GP and Arkhouse Manager, may be deemed to beneficially own all of the 7,829,209 shares of Common Stock (including
the 180,000 shares of Common Stock underlying the 1,800 American call options held by Arkhouse Equities Fund) beneficially owned in aggregate
by Arkhouse GP, Arkhouse Co-Investment III GP, Arkhouse Value Fund GP and Arkhouse Manager; and (xiv)&nbsp;Mr.&nbsp;Hebard directly holds
140,000 shares of Common Stock in &ldquo;street name&rdquo;, and may be deemed to beneficially own a further 6,500 shares of Common Stock.
As of the date hereof, none of the Nominees own beneficially or of record any shares of Common Stock. &nbsp;In addition, <FONT STYLE="background-color: white">o</FONT>n
December 1, 2023, certain Arkhouse Parties and Brigade Capital Management, LP (&ldquo;Brigade&rdquo;) delivered to the Board a non-binding
proposal to acquire all of the outstanding Common Stock of the Company (the &ldquo;Common Stock&rdquo;) that such parties did not already
own for $21.00 per share of Common Stock in cash, which proposal was rejected by the Board.&nbsp; On March 3, 2024, such same Arkhouse
Parties and Brigade delivered to the Board a revised proposal to acquire all of the outstanding Common Stock that they do not already
own at the increased proposed purchase price of $24.00 per share in cash, to which proposal the Board has not yet responded.&nbsp; As
a result of the foregoing, Arkhouse Parties may be deemed to have direct or indirect interests in the proxy solicitation that are in
addition to, or different from, those of other Company shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE"><B>IMPORTANT INFORMATION
AND WHERE TO FIND IT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">ARKHOUSE STRONGLY
ADVISES ALL STOCKHOLDERS OF MACY&rsquo;S TO READ BOTH THE PARTICIPANTS&rsquo; PROXY STATEMENT AND MACY&rsquo;S&rsquo; PROXY STATEMENT
AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE
AT NO CHARGE ON THE SEC&rsquo;S WEBSITE AT WWW.SEC.GOV. THE PARTICIPANTS&rsquo; DEFINITIVE PROXY STATEMENT, WHEN FILED, AND OTHER RELEVANT
DOCUMENTS, WILL ALSO BE AVAILABLE ON THE SEC WEBSITE, FREE OF CHARGE. IN ADDITION, THE PARTICIPANTS WILL PROVIDE COPIES OF THE PROXY
STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS&rsquo; PROXY SOLICITOR,
MORROW SODALI LLC (STOCKHOLDERS CAN CALL TOLL-FREE: +1 (800) 662-5200).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE"></P>

<!-- Field: Page; Sequence: 4; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: #FEFEFE">&nbsp;</P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
