Macy's announced Sunday it had rejected a $5.8 billion take-private offer from Arkhouse Management and Brigade Capital Management, citing a "lack of compelling value."

Why it matters: Macy's said last week it would close five more stores and cut its workforce by 3.5% despite a strong third quarter relative to its past performance.

Driving the news: Both Macy's and Arkhouse confirmed Sunday that the investor group submitted a Dec. 1 proposal to acquire all outstanding stocks of the retailer it didn't already own for $21 per share.

What they're saying: "The Board has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade," Macy's said in a statement.

Meanwhile, Arkhouse Management said in a statement that the investment group sees "a potential for a meaningful increase to the original proposal if we are granted access to the necessary due diligence."

Go deeper: Read more in Monday's Axios Pro Rata newsletter