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.
Like other department store operators, Hudson’s Bay has struggled as more people shop online. The company has been selling businesses, including Lord & Taylor and some European businesses. The Canadian company has about 300 stores, including its namesake Hudson’s Bay.
The company 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.
The deal is expected to be completed later this year or early next year
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.
Chapman reported from Newark, New Jersey.
Joseph Pisani And Michelle Chapman, The Associated Press