The Hudson's Bay Co. board agreed Monday to a sweetened privatization offer that values the retailer at about $1.9 billion, but the deal will require support from minority shareholders if it is to be accepted.
Hudson's Bay Co. reported a $984-million loss in its latest quarter as its bottom line was eroded by a number of one-time charges and its flagship Canadian retail banner experienced weaker sales compared with last year.
Canada's oldest retailer is selling one of its banners to a clothing rental subscription service while maintaining an equity stake in the new business that the CEO says will be "a first in the industry."
Shoppers at Hudson's Bay stores may see more personnel on the floors at the busier locations later this year, and more upscale merchandise than last year, as the retailer's management team works to revive the chain's sales growth.
Hudson's Bay Co. stock was up 42 per cent Monday after a group of shareholders, including executive chairman Richard Baker, proposed taking the retailer private once it completes the sale of its remaining German holdings for $1.5 billion.
Hudson's Bay Co. says its president Alison Coville is stepping down. The Toronto-based company behind Hudson's Bay, Saks Fifth Avenue and Lord and Taylor stores did not give a reason for Coville's departure.