Lord & Taylor Possibly For Sale? Hudson’s Bay Looks For ‘Strategic Alternatives’ For The Brand

The owner of Lord & Taylor, Hudson’s Bay (HBC.TO), could be putting the brand up for sale as it shops for “strategic alternatives.” The company said on Monday that it was looking to possibly sell or merge the brand so it can “focus on its greatest opportunities.”

Hudson’s Bay has been working to make its operations more simplified as it looks to strengthen its organization and find value in its real estate. The company said it is also focusing its efforts on enhancing its cost structure while investing in technology and digital options as well as marketing and its store locations.

“This review of strategic alternatives for Lord + Taylor is another example of how we are exploring options to position HBC for long-term success,” Helena Foulkes, Hudson’s Bay CEO said. “Over the last year, we’ve taken bold actions and made fundamental fixes that have resulted in a far stronger, more capable HBC, having returned to positive operating cash flow, increased profitability and strengthened the balance sheet.”

The retailer has hired PJ Solomon as its financial advisor to review the operating business of Lord & Taylor. Lord & Taylor offers premium apparel and accessories and had a 2018 annual revenue of CAD $1.4 billion (approximately USD $1 billion). It has more than 40 stores located in the northeast and mid-Atlantic region.

This is not the first time that Hudson’s Bay has been looking for sale options as it sold its flagship Lord & Taylor location in New York City to WeWork for $850 million.

Besides Lord & Taylor, Hudson’s Bay also operates the Saks Fifth Avenue, Hudson’s Bay, and Saks OFF 5^th retail brands.