Hedge fund Arkhouse Management has nominated a slate of nine individuals to stand for election as Directors to the board of US department store Macy's after the retailer rejected a $5.8bn take-private offer from the investment firm, according to a report by Reuters.

Macy's cited concerns over valuation and deal financing in rejecting the approach by Arkhouse and credit investment specialist Brigade Capital Management and is now facing a proxy battle with the two firms.

In a statement released by Macy's, the company said it continued to discuss additional financing information with Arkhouse and Brigade after rejecting the proposal in an attempt to potentially advance discussions, but has yet to receive any details deposited the firms having "multiple opportunities to do so".