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Macy’s to close 150 stores, or about 30% of its locations

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Macy’s on Tuesday said it plans to close roughly 150 underperforming stores over the next three years, the struggling retailer’s latest effort to energize its business as it seeks to fend off a proposed takeover by activist investors. 

The department store chain said it plans to focus on expanding its luxury brands, Bloomingdale’s and Bluemercury. Macy’s will shutter 50 stores over the next year. Overall, the restructuring plan will leave Macy’s with 350 outlets.

The announcement of the store closures comes after Macy’s last month rejected a $5.8 takeover offer from investing firm Arkhouse Management and its partner Brigade Capital Management. 

Like other brick-and-mortar retailers, Macy’s is battling an industrywide sales slump brought on by rising competition from online retailers. The company on Tuesday said its fourth-quarter sales slipped 1.7% to $8.1 billion.

—This is a developing story and will be updated.