(Bloomberg) -- Macy’s Inc. named two new directors nominated by activist investor Arkhouse Management Co., which agreed to end its effort to seek majority board representation as it attempts to acquire the department-store operator. 

Richard Clark and Richard Markee will join the board and its finance committee that oversees acquisition proposals, according to a statement from the retailer Wednesday. Macy’s is “continuing to engage” with Arkhouse and Brigade Capital Management on their proposal to acquire the company, the company said. 

The Macy’s board will be expanded to 15 directors after Wednesday’s appointment. The company also added real estate investor Douglas Sesler to the board last month and signed a confidentiality agreement with Arkhouse. That allows the investor to conduct due diligence after it increased its bid to $24 a share from $21. 

Read more: Macy’s Names New Director, Open to Engaging With Arkhouse (1)

“The company has since begun to provide Arkhouse and Brigade with certain confidential due diligence information, and that process remains ongoing,” Macy’s said Wednesday. “The board is open-minded about the best path to create shareholder value.”

Arkhouse in February nominated nine directors to the Macy’s board and criticized the company for not engaging with the potential buyer “sincerely.” Arkhouse is dropping those nominations after Wednesday’s appointment of Clark and Markee, Macy’s said. 

“The appointment of Clark and Markee to the board and the finance committee, which is tasked with reviewing our proposal and any alternative transactions, will ensure that our discussions continue to be constructive and that our proposal is treated seriously and expeditiously,” Gavriel Kahane and Jonathon Blackwell, managing partners at Arkhouse in a separate statement.

Shares of Macy’s are up 6.4% in the past year, giving it a market value of about $5.4 billion. 

©2024 Bloomberg L.P.