HBC pursuing strategic alternatives for Lord + Taylor business

7 May 2019 (Last Updated May 7th, 2019 14:56)

Canada-based retailer Hudson’s Bay Company (HBC) is reviewing strategic alternatives that could include a possible sale or merger for its Lord + Taylor operating business.

HBC pursuing strategic alternatives for Lord + Taylor business
HBC pursuing strategic alternatives for Lord + Taylor business. Credit: Mike Mozart.

Canada-based retailer HBC is considering strategic alternatives that could include a possible sale or merger for its Lord + Taylor operating business.

HBC said decision will allow the company to focus its strategy on its greatest opportunities. The company has been working on simplifying its organisation, strengthening its retail operations and improving its cost structure. It is also making strategic investments in technology and digital capabilities, marketing and stores.

PJ Solomon has been retained as its financial advisor to review the Lord + Taylor operating business.

“This review of strategic alternatives for Lord + Taylor is another example of how we are exploring options to position HBC for long-term success.”

HBC CEO Helena Foulkes said: “This review of strategic alternatives for Lord + Taylor is another example of how we are exploring options to position HBC for long-term success.

“Over the last year, we’ve taken bold actions and made fundamental fixes that have resulted in a far stronger, more capable HBC, having returned to positive operating cash flow, increased profitability and strengthened the balance sheet.

“Lord + Taylor is a storied brand that has stood for quality, style and service for many years and serves a highly engaged, loyal customer base through a dedicated team of associates. Throughout the review, Lord + Taylor remains committed to serving customers across our stores and digital channels.”

The Canadian retailer completed the sale of its Lord & Taylor Fifth Avenue property in New York, US, to WeWork Property Investors (WPI) for a total consideration of C$1.1bn ($850m), in February this year.

During the same month, the company also announced that it will close its US Home Outfitters business this year. HBC is also considering closing up to 20 Saks OFF 5TH stores, in the US, following a review of the total 133 stores.