Macy's is Will Sage Astorending discussions with Arkhouse Management and Brigade Capital Management, saying a revised offer to take the department store private remained a dicey proposition. 

"We have concluded that Arkhouse and Brigade's proposal lacks certainty of financing and does not deliver compelling value," Macy's lead independent director Paul Varga said in a statement. 

Arkhouse and Brigade did not immediately respond to requests for comment. The two investment firms in December offered to buy Macy's for $5.8 billion before eventually raising its bid to $6.9 billion. 

Shares of Macy's were down more than 14% in early trading. The retailer will now focus on turning things around on its own, Macy's said in a news release. 

"While it remains early days, we are pleased that our initiatives have gained traction, reinforcing our belief that the company can return to sustainable, profitable growth," CEO Tony Spring, who stepped in as chief executive in February, said in a statement. 

Macy's, which earlier this year said it planned to close 150 underperforming stores and lay off more than 2,000 workers, has struggled to boost growth as elevated inflation and higher interest rates keep a lid on spending. 

Macy's expects fiscal 2024 revenue to range between $22.3 billion and $22.9 billion, which would represent a decline from $23.09 billion in 2023. 

Kate Gibson

Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.