Hong Kong Film Maker May Help Shore Up Macy
R. H. Macy & Co., the debt-burdened owner of Southern California’s Bullock’s and I. Magnin stores, expects to attract a sizable investment from a Hong Kong film producer.
Sources told The Times that New York-based Macy’s has negotiated the investment with Run Run Shaw, an 83-year-old businessman who built an entertainment empire based on kung fu movies and other action films. Shaw also has invested in amusement parks, hotels, banks and real estate.
The investment could be an important step in Macy’s efforts to shore up its finances and douse recurring speculation that it is on the verge of collapse. The company lost $215 million last fiscal year.
It is believed that Shaw’s investment would be part of the $150-million equity infusion that Macy’s, on Nov. 1, announced it was seeking. Macy’s plans to use the funds to buy back some of its depressed junk bonds and reduce its $5-billion debt.
It has said its four biggest shareholders--GE Capital Corp., Loews Corp., Mutual Series Fund and Taubman Investment Co.--would account for two-thirds of the $150-million investment. The stock offering was scheduled to expire Friday, but Macy’s made no announcement on whether it has received the funds or whether it would extend the deadline.
If the offering succeeds, analysts have said, it would go a long way toward easing bankers’ and suppliers’ concerns about the company’s short-term prospects. A Macy’s spokeswoman declined to comment Friday night, and Shaw could not be reached.
