Hudson’s Bay looks to shed stores ahead of $1.3B deal to go private

The Canadian parent company of Saks Fifth Avenue and Lord & Taylor has seen declining sales revenue

National /
Jun.June 13, 2019 04:00 PM
Hudson’s Bay chairman Richard Baker and Saks Off 5th (Credit: Getty Images and iStock)

Hudson’s Bay chairman Richard Baker and Saks Off 5th (Credit: Getty Images and iStock)

The global retail industry’s identity crisis is taking a heavy toll on Hudson’s Bay Company.

The Canadian parent company of Saks Fifth Avenue and Lord & Taylor announced Thursday it will close 15 of its Saks Off 5th discount stores and four Lord & Taylor locations, part of an effort to cut fat ahead of its $1.3 billion move to take the company private, according to the Wall Street Journal.

Hudson’s Bay shareholders including Richard Baker, Rhone Capital LLC and WeWork Property Advisers will fund their buyout in part by selling the German operations the company acquired in 2015 and 2016. Shares of the company rose by about 42 percent on the Toronto Stock Exchange after the deal was announced Monday.

But the smaller pool of shareholders might not do much to reverse the company’s tepid sales numbers, which pushed down the company’s stock value by almost 50 percent during the year leading up to Monday. The company’s revenue fell by 3.3 percent during the quarter ending May 4, as losses at Lord & Taylor and Hudson’s Bay stores outweighed growth at Saks, the company said Thursday.

Shares of rival department store chains Macy’s and Nordstrom have declined in tandem with Hudson’s Bay since 2015.

Last month, the Journal reported Hudson’s Bay is considering selling off the entire Lord & Taylor brand. [WSJ]Alex Nitkin


Related Articles

arrow_forward_ios
Greystar buys site earmarked for 20-story West Loop tower
Greystar buys site earmarked for 20-story West Loop tower
Greystar buys site earmarked for 20-story West Loop tower
Elk Grove Village to get $1B data center project
Elk Grove Village to get $1B data center project
Elk Grove Village to get $1B data center project
An early rendering of 523-45 South Wabash Street (BKV Group)
$350M mixed-use development in Loop approved
$350M mixed-use development in Loop approved
Donald Trump with the Trump International Hotel & Tower in Chicago (Getty, iStock)
Trump gets another tax break on Trump Tower retail space
Trump gets another tax break on Trump Tower retail space
Jenner & Block poised to sign new lease at Chicago’s River North building after settling suit with landlord
Jenner & Block cuts space at 353 N Clark after settling suit with landlord
Jenner & Block cuts space at 353 N Clark after settling suit with landlord
Industrial investors say ineffective leadership in Chicago, uncertainty of Cook County property taxes are risk factors to investing: Report
Chicago real estate pros’ biggest worries: politicians and taxes
Chicago real estate pros’ biggest worries: politicians and taxes
Mayor Lori Lightfoot (Getty)
Plans to ease cannabis restrictions in Chicago near final approval
Plans to ease cannabis restrictions in Chicago near final approval
Germania Club building, 108 West Germania Place (Google Maps)
Site of Chicago’s van Gogh exhibit sells for $15M
Site of Chicago’s van Gogh exhibit sells for $15M
arrow_forward_ios

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

Loading...