Arkhouse Management and Brigade Capital Management have offered to buy Macy's for $5.8 billion, people familiar with the matter told CNBC on Sunday.

The offer values the retailer at $21 per share, according to the sources. Macy's closed at just over $17 a share on Friday, down roughly 17% since the start of the year.

The investor group would be willing to offer a higher bid based on due diligence, the sources said. The group would already be paying a premium for the department store, which has struggled to keep up with online competitors.

Retailers across the board have faced headwinds this year as volatile interest rates and high inflation weigh on consumers' wallets. However, consumer spending has proven particularly resilient in the online shopping sector.

Macy's is not the first department store to get a takeover bid in the face of sagging business. In 2022, Kohl's received multiple acquisition offers, which it said undervalued its business.

Arkhouse and Macy's declined to comment. Brigade did not immediately respond to CNBC's request for comment.

The Wall Street Journal first reported the buyout offer.

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