Macy’s Pressured to Pursue Joint Ventures

Starboard Value (New York), hedge fund and activist shareholder of Macy’s (Cincinnati), has urged the department store retailer to pursue deals and “joint venture structures” for its real estate, reports The New York Times.

Starboard addressed Macy’s leadership in a publicly disclosed letter and valued company assets at $21 billion, though the retailer’s market value on Friday, Jan. 8, was only $11 billion.

The pressure to make the deals comes as a response to Macy’s report of lower than expected holiday sales. Starboard further explains that cash from the ventures would allow the company to pay off debt and increase company value.