US department store chain Macy's continues to be the target of a persistent investor group seeking to take the company private.

Arkhouse Management, a real estate investment company, and Brigade Capital Management, a global asset manager, have upped their acquisition offer for a second time, to $24.80 per share, valuing Macy's at roughly $6.9bn, the Wall Street Journal reported.

This latest proposal comes after Macy's rejected the group's previous offers of $21 and $24 per share.

The increased bid represents a nearly 43% premium over Macy's closing stock price in early December, when takeover talks first surfaced.

Macy's has been struggling in recent years, with declining sales and a shrinking market share.

The company has responded by closing underperforming stores and revamping others.

In April this year, Macy's appointed two new directors affiliated with Arkhouse, seemingly acknowledging the need for change.

Macy's board is currently engaged with Arkhouse and Brigade to evaluate the buyout proposal.

Macy's situation reflects the broader challenges facing department stores globally.

The rise of e-commerce and changing consumer preferences have put pressure on traditional brick-and-mortar retailers.

Even established players such as Nordstrom are exploring the possibility of going private.

Macy's board now faces a critical decision.

Taking the company private could provide the flexibility and breathing room needed to execute its turnaround plan without the pressures of the public market.

However, Macy's new CEO, Tony Spring, remains confident in the company's public turnaround strategy and believes his plan is beginning to yield positive results.

The coming weeks will be crucial as Macy's weighs its options.

The outcome of this saga will be closely watched by the retail industry, with implications for department stores grappling with similar challenges.