NEW YORK, United States — Hudson’s Bay 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.
By Sandrine Rastello; Editors: Crayton Harrison, Anne Riley Moffat, Lisa Wolfson.