Macy’s Proxy Fight Over Brigade Buyout Offer: Pension Fund Sues

Macy’s Inc. has “weaponized” its debt agreements as part of a proxy fight with a pair of investment firms, putting its financial future at risk, a pension fund claimed in suing the retailer.

The takeover defense, which Macy’s is threatening to deploy in a fight with Arkhouse Management and Brigade Capital Management, would accelerate the payment of more than $1.5 billion in debt and burden the company’s finances, according to the lawsuit. It was filed Monday in Delaware Chancery Court by a fund for municipal workers in Michigan that holds Macy’s stock.