Saks owner Hudson’s Bay to go private

NEW YORK — Hudson’s Bay, the owner of Saks Fifth Avenue, is being taken private by a group of its shareholders that will try to revive the department store chain.

The deal, which is expected to close later this year or early next year, comes as Hudson’s Bay, like many retailers, has struggled amid shifting consumer behaviour. Shoppers are buying more online, and they’re also looking to buy used designer goods and embracing rental services like Rent the Runway.

Hudson’s Bay has been selling businesses, including Lord & Taylor and some European businesses. The Canadian company has about 300 stores, including its namesake Hudson’s Bay. Saks Fifth Avenue has been a bright spot for the company, though sales at established stores slowed down in the second quarter. Saks is finishing up a $250 million renovation of its Fifth Avenue flagship in Manhattan, which includes an overhaul of its beauty area. It also just opened a new floor dedicated to fine jewelry called The Vault.

Other luxury department stores are going through big changes amid a rocky landscape.

Iconic Barneys New York has reached a deal with Authentic Brands Group, a licensing company that owns brands like Aeropostale, and B. Riley Financial to buy all of its assets for $271.4 million in bankruptcy — unless another bidder offers more. Under this deal, all seven stores would likely close. And Saks Fifth Avenue is working with Authentic on a potential agreement to license the Barneys name. Barneys New York filed for bankruptcy over the summer.

Meanwhile, Nordstrom is reportedly trying to go private again, more than a year after the Nordstrom family members made a failed takeover bid.

On Monday, the Seattle-based company offered reporters a peak of its first women’s flagship store in Manhattan, which features lots of new services and seven food and beverage areas. Shoppers can order a drink or an appetizer and have it served to them while they’re shopping in the shoe department. The seven-level 320,000-square-foot store, which will open Thursday, marks its latest and biggest expansion into Manhattan.

Hudson’s Bay said Monday that its common shares will be purchased for 10.30 Canadian dollars ($7.86) per share in cash, in a deal valued at more than $1.4 billion. The shareholder group, which includes Hudson’s Bay Executive Chairman Richard Baker, initially proposed in June a buyout offer of 9.45 Canadian dollars ($7.21) per share. The shareholder group owns 57% of the company.

In August, Hudson’s Bay agreed to sell Lord & Taylor to rental clothing company Le Tote. Under that agreement, Hudson’s Bay and a subsidiary will own the stores and Le Tore will operate from them. And earlier this month it completed the sale of its European real estate and retail joint ventures.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATE: Seven-year-old dies and her mother and two brothers are injured in trailer fire

Fire started shortly after 1 a.m. and took four hours to put out

Racist videos targeting Maskwacis are under investigation

Video images of what appears to be teenagers issuing racist and sexist… Continue reading

Red Deer County residents decry lack of public consultation over ‘enormous’ river water withdrawals

Noise, light, diesel emission complaints were made to the Alberta Energy Regulator

Woman no longer co-accused in 2019 Red Deer murder

Preliminary hearing of co-accused in murder began on Friday and resumes next month

Red Deer Mayor says city council’s advocacy isn’t over with shelter and hospital funding gains

Additional Crown prosecutors are still at the top of Tara Veer’s list

Fashion Fridays: Tammy’s big makeover

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Your community calendar

Feb. 19 A Liberation of Holland event is being held at the… Continue reading

Canadian-Indians worry for their families as riots break out in India

Naila Saeed could do nothing but worry from afar when rioters descended… Continue reading

Public health agency weighs stronger COVID-19 protection for front-line workers

OTTAWA — The Public Health Agency of Canada says it will consult… Continue reading

Ukraine pledges help for airline compensation for Iran plane crash victims

OTTAWA — Ukraine’s ambassador to Canada says his government will help Foreign… Continue reading

Saskatchewan premier won’t commit to fall election; cites national unrest

ESTEVAN, Sask. — Saskatchewan Premier Scott Moe says rail blockades and the… Continue reading

Suspect charged with first-degree murder in death of 13-year-old Quebec girl

ST-JEROME, Que. — Friends and family of a teenage girl whose body… Continue reading

Tories call on government to compensate dairy farmers ‘left behind’ in new NAFTA

OTTAWA — The Conservative opposition says the government must compensate dairy farmers… Continue reading

Red Deer Construction Association honours local builders

5th annual Commercial Construction Awards took place on Thursday evening

Most Read