mcloudyn.png
Sunday December 8th, 2019 7:38AM

Saks owner Hudson's Bay to go private

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — 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 behavior. 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.

___

AP Business Writer Michelle Chapman contributed this report from Newark, New Jersey.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Consumer News, AP Business - Corporate News
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Saks owner Hudson's Bay to go private
Hudson's Bay, the owner of Saks Fifth Avenue, is being taken private by a group of shareholders
11:01AM ( 13 minutes ago )
Companies reach $260 million deal to settle opioids lawsuit
The nation's three largest drug distributors and a drugmaker have reached a $260 million deal to settle a lawsuit related to the nation's opioid crisis
10:57AM ( 17 minutes ago )
Report: US public land workers assaulted, threatened on job
A Congressional watchdog agency says federal employees overseeing U.S. public lands were assaulted or threatened at least 360 times over a five-year period
10:46AM ( 27 minutes ago )
Associated Press (AP)
Vape pioneer peddled street drugs that sickened dozens
A pioneer in marketing CBD as a health product has pleaded guilty to selling large quantities of synthetic marijuana which was secretly added to vapes, sickening dozens.
10:17AM ( 56 minutes ago )
UK's Boris Johnson tries again for vote on EU divorce deal
British Prime Minister Boris Johnson is attempting for a second time to secure lawmakers' backing for his European Union divorce deal, as Parliament gears up for a grueling week of political warfare over Brexit
9:02AM ( 2 hours ago )
2nd Sesame Street Place park opening in San Diego
There are plenty of sunny days to sweep the clouds away where SeaWorld is opening its next theme park
8:58AM ( 2 hours ago )
AP Business
Companies reach $260 million deal to settle opioids lawsuit
The nation's three largest drug distributors and a drugmaker have reached a $260 million deal to settle a lawsuit related to the nation's opioid crisis
10:57AM ( 17 minutes ago )
Report: US public land workers assaulted, threatened on job
A Congressional watchdog agency says federal employees overseeing U.S. public lands were assaulted or threatened at least 360 times over a five-year period
10:46AM ( 27 minutes ago )
Residents of northeast Syria city pelt departing US troops
Angered by US withdrawal, residents of northeastern Syrian pelt troops as they drive out
10:44AM ( 29 minutes ago )
N Ireland laws on abortion, same-sex marriage, set to change
Abortion is set to be decriminalized and same-sex marriage legalized in Northern Ireland as of midnight, bringing its laws in line with the rest of the U.K.
10:31AM ( 42 minutes ago )
Tornado rips through Dallas; 1 dead in Arkansas amid storms
A tornado ripped through the Dallas area, causing damage to homes and businesses and knocking out electricity to tens of thousands of people
10:27AM ( 46 minutes ago )