Activist investor wants Hudson’s Bay to tap into its real estate potential

Jonathan Litt says the owner of Saks Fifth Avenue should follow in Macy’s footsteps, or sell to them

New York /
Jun.June 21, 2018 06:00 PM

Jonathan Litt and Saks Fifth Avenue flagship in New York City (Credit: Getty Images)

It’s been almost a year since Jonathan Litt, founder of hedge fund Land & Buildings, pleaded for retail giant Hudson’s Bay Company to change its ways.

The activist investor is at it again, asking the owner of Saks Fifth Avenue to look into new ways to improve shareholder value. Specifically, he wants it to sell off some of its real estate, Bloomberg reported.

In a letter to shareholders, Litt said Hudson’s Bay could learn from its rival, Macy’s Inc., which has been unloading many of its stores, after steadily declining sales. Macy’s stock is up 50 percent this year as a result of its latest real estate deals, he added. Meanwhile, Hudson’s Bay stock has ticked up just 4 percent so far this year.

“One could even reasonably ask whether the most logical course for HBC at this point would be an acquisition by Macy’s as opposed to trying to play catch up,” wrote Litt in the letter released Thursday. His firm owns a 6.2 percent stake in Hudson’s Bay.

Hudson’s Bay stock price was around $11.70 per share, though Litt contended the company’s real estate alone is worth $31 per share.

Amid a decline in stock price, the Canadian retailer has been exploring different ways to turn the tide.

Earlier this month, the company announced the closure of its flagship Lord & Taylor store at 424 Fifth Avenue in Manhattan, after selling the building last year to WeWork and Rhone Capital for $850 million. It also recently sold its online shopping site Gilt. [Bloomberg] — Natalie Hoberman


Related Articles

arrow_forward_ios
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
(iStock/Illustration by Kevin Rebong for The Real Deal)
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Rudin Management's Bill Rudin, 1675 Broadway and Gannett CEO Mike Reed (Getty, Google Maps, Gannett)
Gannett to move its NYC office two blocks north
Gannett to move its NYC office two blocks north
A rendering of the facility at 1029 Newark Avenue in Elizabeth, Fidelco chairman Marc Berson and Elberon Development Group chairman Ann Evans Estabrook (Photos via JLL, Fidelco and Elberon)
Cold storage facility in New Jersey gets $34M loan
Cold storage facility in New Jersey gets $34M loan
Silverstein Properties' Larry Silverstein and Phase I of the Denizen Bushwick at 54 Noll Street (Getty, Google Maps/Illustration by Kevin Rebong for The Real Deal)
Silverstein offers to buy half of All Year’s Bushwick rental complex
Silverstein offers to buy half of All Year’s Bushwick rental complex
Macerich CEO Thomas O'Hern and PJT Partners CEO Paul Taubman (Macerich, PJT)
Macerich taps PJT Partners for assistance
Macerich taps PJT Partners for assistance
HSBC COO John Hinshaw (Getty, iStock)
HSBC to shrink its office footprint amid shift to WFH
HSBC to shrink its office footprint amid shift to WFH
Gucci at Trump Tower (Getty)
Gucci renews lease in Trump Tower
Gucci renews lease in Trump Tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...