Macy’s said that Arkhouse and Brigade repeatedly failed to address concerns by its board of directors about their ability to finance their deal. The chain said even as late as last week the firms did not follow through on financial questions.

“In light of the board’s concerns, as well as the lack of compelling value in their non-binding proposal, the board has determined not to enter into a non-disclosure agreement,” Macy’s said.

Arkhouse, which specializes in mispriced publicly traded real estate assets, made the bid alongside Brigade in December, offering the deal worth $5.8 billion which was more than $1 billion above its market capitalization at the time.

Responding to Macy’s decision, Arkhouse said it would be willing to up its buyout offer with additional information from Macy’s.

“The proposed purchase price represents a 32.4% premium to the unaffected stock price and a 56.8% premium to the company’s 30-day volume weighted adjusted stock price as of Nov. 30, 2023,” Arkhouse Managing Partners Gavriel Kahane and Jonathon Blackwell said in a statement.

“We see the potential for a meaningful increase to our original proposal if we are granted access to the necessary due diligence and, to that end, have offered to sign a mutual non-disclosure agreement to conduct this due diligence. We have conviction in the long-term success of Macy’s but believe that its potential will only be realized as a private company.”

With some 600 brick-and-mortar stores in some of the most highly-prized locations in the country, like Herald Square in the heart of New York City, has long made Macy’s attractive for its real estate footprint.