- Title: Hudson's Bay to sell Lord & Taylor for $100 mln
- Date: 28th August 2019
- Summary: NEW YORK, NEW YORK, UNITED STATES (FILE - JUNE 5, 2018) (REUTERS) VARIOUS OF NOW-CLOSED LORD & TAYLOR'S FLAGSHIP STORE EXTERIORS
- Embargoed: 11th September 2019 17:59
- Keywords: retail department store Lord & Taylor fashion rental service company Le Tote Trae Bodge $100 mln sales Hudson's Bay merchandise
- Location: NEW YORK, NEW YORK, + SCHAUMBURG, ILLINOIS, + MONTCLAIR, NEW JERSEY, UNITED STATES / OTTAWA, CANADA / INTERNET
- City: NEW YORK, NEW YORK, + SCHAUMBURG, ILLINOIS, + MONTCLAIR, NEW JERSEY, UNITED STATES / OTTAWA, CANADA / INTERNET
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA007AU4W0WD
- Aspect Ratio: 16:9
- Story Text: Hudson's Bay said on Wednesday (August 28) it would sell its Lord & Taylor department store business to fashion rental service company Le Tote Inc. for about $100 million, as the retail operator culls its portfolio to a few key brands.
The retail company has been selling businesses and closing stores over the past few years to focus on luxury department store chain Saks Fifth Avenue and Hudson's Bay in Canada to shore up its finances as shoppers skip brick-and-mortar stores to shop online instead.
Le Tote will pay Hudson's Bay C$99.5 million ($74.95 million) in cash when the deal closes and another C$33.2 million in cash after two years. Hudson's Bay will receive a 25 percent equity stake in Le Tote and two seats on the company's board.
The deal with Le Tote comes months after Hudson's Bay Executive Chairman Richard Baker offered to take the Canadian retailer private in a C$1.74 billion deal.
A special committee of Hudson's Bay's board said Baker's offer for the company was "inadequate," while shareholders, who must approve the deal, have opposed it because it does not provide enough value.
Hudson's Bay's sale of the Lord & Taylor business is the latest of several divestitures. The retailer announced in 2017 it would sell Lord & Taylor's Manhattan flagship to co-working space manager The We Company.
Earlier this year, Hudson's Bay sold its remaining stake in its German real estate venture for C$1.5 billion.
(Production: Aleksandra Michalska)
- Copyright Holder: FILE REUTERS (CAN SELL)
- Copyright Notice: (c) Copyright Thomson Reuters 2019. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None