Hudson's Bay Reviewing Options Following Activist Pressure
Hudson's Bay, the owner of the Saks Fifth Avenue and Lord & Taylor retail chains, is seeking to carry out a review of its options, including going private, following pressure from an activist shareholder, people familiar with the matter said. Hudson's Bay, which is already working with an investment bank to defend itself against activist hedge fund Land and Buildings, has been seeking to hire another financial adviser to carry out the review, the people said this week. The review will consider all available options, from the possibility of the company going private to potential sales of retail assets and real estate, the sources said, cautioning that no transaction is certain.
Total Retail's Take: Like its department store competitors, including Neiman Marcus, Macy's and to a lesser extent Nordstrom, Hudson's Bay's companies have struggled to get customers into their stores as more shoppers move online. The result has been pressure from investors to make changes, including management shake-ups, job cuts and talk of taking Hudson's Bay private. The company has yet to comment on the rumors.
