Saks-proprietor Hudson’s Bay Company said Monday it is investigating vital options for its Lord and Taylor brand, including a conceivable sale or merger.
The news sent the stock strongly higher, up 3.4% by late morning.
Like different U.S. department stores, Lord and Taylor has been battling as clients shop less at malls and more online. Accordingly, numerous department stores have been covering areas as opposed to opening them.
Lord and Taylor’s footprint has tumbled to 45 department stores as of Feb. 2, down from 50 every year back. Among its store terminations is its famous Fifth Avenue location, which went dark earlier this year after the building was sold to WeWork.
Lord and Taylor’s parent organization has been attempting to simplify its association, strengthen its retail operations and improve its cost structure.
“This review of strategic alternatives for Lord + Taylor is another example of how we are exploring options to position HBC for long-term success,” Hudson’s Bay CEO Helena Foulkes said in an announcement.
A month ago, Hudson’s Bay revealed that final quarter same-store deals for Lord and Taylor, Home Outfitters and its namesake brand declined by 5.2%. Its luxury department store brand Saks Fifth Avenue detailed same-store deals development of 3.9%.
The organization declared Monday that it has retained PJ Solomon as its financial advisor for its review of the department store brand.
Topics #Helena Foulkes #Hudson's Bay Company #Lord and Taylor #PJ Solomon
