Lord & Taylor Could Be Sold as Hudson's Bay Considers Options
(Bloomberg) -- Hudson’s Bay Co. said it’s pursuing strategic options for the struggling Lord & Taylor chain, including a potential sale or merger, as the Canadian retailer refocuses on its best performing units such as Saks Fifth Avenue.
- Chief Executive Officer Helena Foulkes says the move “is another example of how we are exploring options to position HBC for long-term success.” Hudson’s Bay has already closed several Lord & Taylor stores, including the flagship Manhattan location after agreeing to sell the building on Fifth Avenue.
- Foulkes’s “everything is on the table” approach has already resulted in selling flash-sale website Gilt and merging its European operations with a rival’s department-store chain. She’s also shutting down Canada’s Home Outfitters business and planning to close as many as 20 Saks OFF 5th locations in the U.S.
- Lord & Taylor has more than 40 stores in the northeastern and mid-Atlantic regions, as well as online operations. Last year, it had revenue of C$1.4 billion ($1 billion), HBC said in a statement.
- PJ Solomon is providing financial advice to HBC for its review of Lord & Taylor.
- Shares of Hudson’s Bay rose as much as 2.4 percent to C$7.57 in Toronto. The shares had risen 1.4 percent this year through Friday’s close, trailing the 15 percent gain in the S&P/TSX Composite Index.
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