Business Notes: Retailing

Ordinarily, R.H. Macy's is a place for buyers to shop. But lately, it is Macy's that is on the shopping list of big-time corporate buyers. Faced with debilitating debts, rising defections by suppliers and disappointing holiday sales, the New York City retailer dubbed the world's largest store is on the verge of bankruptcy. Last week, only hours before a deadline to pay some of its creditors, Macy's almost found a savior in the person of billionaire Laurence Tisch, chairman of CBS and a member of the retailer's board. Through his family-controlled Loews Corp., Tisch offered to purchase the store chain and inject as much as $1 billion in new capital, buying out stockholders and bond owners at prices below the face value of their investments.

The deal would have restructured Macy's finances and restored the confidence of suppliers. But it fell through after hitting a last-minute snag with creditors, who would have been forced to make significant concessions. While analysts think that Tisch's deal could be revived by a sweetened offer, other bidders could also emerge. The most likely is Hong Kong financier Sir Run Run Shaw, who owns about 10% of Macy's. Meanwhile, the company continues to hang by a slender thread.