US department store chain Macy's has rejected a $5.8bn buyout bid from an investor group led by Arkhouse Management and Brigade Capital. 

The retailer cited concerns over the financing and valuation of the deal as the primary reasons for the refusal.  

The offer, which was unsolicited and non-binding, proposed to acquire all outstanding shares of Macy's for $21 per share in cash. 

The board of Macy's conducted a thorough review of the proposal with the assistance of independent legal, financial and real estate advisors.  

The proposal from Arkhouse and Brigade did not provide a sufficient basis to proceed with a non-disclosure agreement or to disclose any due diligence information. 

Arkhouse and Brigade also provided additional requested information relating to its financing plan. However, they failed to solve the board’s concerns regarding Arkhouse and Brigade’s ability to finance their proposed transaction. 

Macy's chairman and chief executive officer Jeff Gennette said: “The Macy’s board of directors and management team have a proven track record of evaluating a broad range of options to enhance shareholder value.  

“Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board determined that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s shareholders. We continue to be open to opportunities that are in the best interests of the company and all of our shareholders.” 

The rejection from Macy's comes as a report by the Wall Street Journal said that the retailer is set to reduce its workforce by 2,350 and close five store locations to streamline its operations.