|Bid||9.97 x 0|
|Ask||9.98 x 0|
|Day's Range||9.97 - 10.11|
|52 Week Range||6.22 - 10.76|
|Beta (3Y Monthly)||1.98|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec. 3, 2019 - Dec. 9, 2019|
|Forward Dividend & Yield||0.05 (0.52%)|
|1y Target Est||10.71|
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.The board said a group of shareholders led by HBC executive chairman Richard Baker, which holds about a 57 per cent stake in the retailer, has agreed to pay $10.30 per share in cash to take HBC private.The bid is nine per cent higher than an earlier offer of $9.45 per share by the group, following objections from Toronto-based Catalyst Capital and Land & Buildings Investment Management of Stamford, Conn. Catalyst declined to comment, but in August the group announced it acquired nearly 18.5 million HBC shares —roughly a 10.05 per cent stake — at a price of $10.11 per share in an effort to oppose the Baker-led bid.Catalyst held a 15.96 per cent stake in the company overall as of the end of August, according to financial markets data firm Refinitiv. The investment firm has previously said it will vote its shares against the privatization bid.L&B didn't immediately respond to requests for comment on the latest development. The activist investor has called Baker's initial offer of $9.45 per share a "woefully inadequate price."The deal announced Monday is subject to approval by a majority of the minority of HBC shareholders, excluding the shareholder group and its affiliates, and approval by a 75 per cent majority vote at a special meeting of shareholders that HBC expects to hold in December. The company expects the deal to close late this year or early 2020.The HBC board said the Baker-led group's offer provides minority shareholders with "immediate and certain value" at a time of uncertainty as the retail industry evolves rapidly.HBC's management, which hasn't commented publicly on the going-private initiative, reported last month that the owner of the Hudson's Bay chain of department stores as well as the New York-based Saks Fifth Avenue luxury chain and Saks Off Fifth fashion outlets lost $984 million in the quarter ended Aug. 3.The third-quarter loss amounted to $5.35 per share and compared with a year-earlier loss of $280 million or $1.45 per share.HBC's overall third-quarter revenue totalled $1.9 billion, roughly the same as a year ago, while comparable store sales fell 0.4 per cent, as comparable sales at the Hudson's Bay chain fell 3.4 per cent in the quarter."Continued industry headwinds and the deterioration in operating performance have negatively affected the company’s financial results," the board said in a statement Monday.It added that "the company will be required to invest substantial capital and resources to remain relevant to its customers and successfully compete."That has been the main message of the Baker-led group, which includes Rhone Capital, WeWork Property Advisors, Hanover Investments (Luxembourg) and Abrams Capital Management.However, opponents of the Baker group have argued that they will essentially be able to fund the privatization from proceeds of HBC's sales of its European operations.HBC also announced Monday it completed the sale of its remaining stakes in it European real estate and retail joint ventures to its partner Signa Retail for a total consideration of approximately $1.5 billion. It used a portion of those funds to repay a $429-million loan, while the remainder will "fortify HBC's balance sheet for future capital and restructuring needs," according to a company presentation on the privatization deal.It adds that funding for the privatization arrangement will come from "existing cash resources," as well as committed debt financing from several banks.The Baker group's revised offer represents a premium of 62 per cent compared with where the shares were trading before the shareholder group's initial proposal announced June 10, according to the HBC board.However, the board also said TD Securities had provided a special committee of directors with an estimate that HBC's common shares had a fair market value of between $10 and $12.25 each, as of Oct. 20.HBC shares closed up 58 cents or about 6.1 per cent at $10.03, remaining below the revised offer price. They traded at a high of $10.19 at one point during the day and stayed below a 52-week high of $10.76.This report by The Canadian Press was first published Oct. 21, 2019.Follow @AleksSagan on Twitter.Companies in this story: (TSX:HBC)Aleksandra Sagan, The Canadian Press
Hudson's Bay Company (HBC.TO) ("HBC" or the “Company”) today announced that, based on the unanimous recommendation of an independent Special Committee of its Board of Directors (the “Special Committee”) following an extensive review and analysis, it has entered into a definitive arrangement agreement (the “Arrangement Agreement”) with a group of HBC shareholders (the “Shareholder Group”) to take the Company private.
(Bloomberg) -- In a first step toward determining its fate, Barneys New York Inc. has selected a consortium led by Authentic Brands Group LLC as its initial bidder, setting a floor for offers due next week for the bankrupt luxury retailer.The $271 million offer from the Authentic Brands group includes a plan to open Barneys shops in Saks Fifth Avenue stores, according to people with knowledge of the matter. The so-called stalking-horse bid calls for closing seven Barneys stores, including its two Manhattan locations and its Beverly Hills store, according to a court filing late Wednesday.The fate of some stores, including its flagship Madison Avenue location, however, is still under discussion, according to one of the people with knowledge of the plans, who asked not to be identified discussing private negotiations.Authentic owns and licenses fashion, celebrity and media brands including Nine West and Sports Illustrated.The stalking horse group includes B. Riley Financial Inc., according to the bankruptcy court filing in Poughkeepsie, New York. Authentic didn’t provide an immediate comment, while Saks’ parent Hudson’s Bay Co. declined to comment.A Barneys representative said in an emailed statement that the offer was “a strong recognition of the value of Barneys’ assets and brand name.”Barneys filed for bankruptcy protection in August and said it would close 15 of its 22 stores, exempting its Beverly Hills location and the Madison Avenue store, among others.Stalking HorseBankrupt companies designate stalking-horse bidders, sometimes before filing, to establish an introductory offer for their assets. Such bidders receive a break-up fee if a deal isn’t consummated. For the Authentic Brands bid, that would be about $8.1 million, or 3% of the purchase price, according to the court filing. Retailers may receive both liquidation bids and offers to keep the chain operating.Barneys outlined a swift sale process that could be substantially completed by the end of this month. Any new bids are due by 5 p.m. on Oct. 22, with an auction two days later if any of those new bids are qualified, and a hearing to approve the sale on Oct. 31.Rival bids in the Barneys bankruptcy case may still emerge before the Oct. 22 deadline. That includes a consortium led by Sam Ben-Avraham, known for his roles in starting New York retail store Atrium and streetwear brand Kith.Ben-Avraham’s group is planning to bid on or before that deadline, he said in an interview, and their offer will look to “maintain the integrity of the brand and its relationship with the customers, suppliers, and workers,” he said.“Authentic Brands has a business model in which they acquire intellectual property from companies and they have a system for monetizing it,” Ben-Avraham said. “I’m coming from a different world, and our approach is developing brands to maximize the potential but still maintain the integrity of the brand.”Ben-Avraham had been pursuing an offer to buy Barneys for about $220 million, but wasn’t able to line up financing by the deadline for the stalking horse role, the Wall Street Journal reported.The case is Barneys New York Inc., 19-36300-cgm, U.S. Bankruptcy Court for the Southern District of New York (Poughkeepsie)(Adds store closings, terms and deadlines starting in second paragraph.)To contact the reporters on this story: Lauren Coleman-Lochner in New York at email@example.com;Eliza Ronalds-Hannon in New York at firstname.lastname@example.org;Katherine Doherty in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Nicole Bullock, Allan LopezFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
TORONTO , Oct. 4, 2019 /CNW/ - Leesa Sleep, a mission-driven premium mattress company, and Hudson's Bay, Canada's premiere department store announced a commitment to donate 500 mattresses over the next ...
New initiative kicks off during Mental Illness Awareness Week TORONTO , Oct. 3, 2019 /CNW/ - Leesa Sleep , a mission-driven luxury mattress company and Hudson's Bay, Canada's premiere department store, ...
Paradise Developments, a long-term shareholder of HBC (the “Company”)(TSX:HBC) today announced that it has delivered a letter to the Special Committee of the Company's Board of Directors related to the non-binding proposal by a group of HBC shareholders to take the company private at $9.45 per share. The full text of the body of the letter follows below.
HBC (HBC.TO) successfully completed the sale of the company’s remaining stakes in its European real estate and retail joint ventures to its partner, SIGNA Retail, for a total consideration of approximately $1.5 billion (€1 billion). HBC permanently repaid its outstanding $429 million term loan, strengthening the balance sheet. The company has assumed full ownership of the Netherlands retail business and the associated guaranteed rent obligations.
TORONTO — Some of the most active companies traded Friday on the Toronto Stock Exchange:Toronto Stock Exchange (16,899.69, up 41.34 points.)Roxgold Inc. (TSX:ROXG). Materials. Unchanged at $1.21 on 24.3 million shares.Husky Energy Inc. (TSX:HSE). Energy. Up eight cents, or 0.82 per cent, to $9.84 on 14.4 million shares.Encana Corp. (TSX:ECA). Energy. Up two cents, or 0.31 per cent, to $6.53 on 12.5 million shares.First Quantum Minerals Ltd. (TSX:FM). Materials. Up $1.01, or 9.02 per cent, to $12.21 on 12.2 million shares.NuVista Energy Ltd. (TSX:NVA). Energy. Down four cents, or 1.54 per cent, to $2.56 on 12.1 million shares.Barrick Gold Corp. (TSX:ABX). Materials. Up 19 cents, or 0.78 per cent, to $24.47 on 12.1 million shares. Companies in the news:Hudson's Bay Co. (TSX:HBC). Up five cents to $9.96. Hudson's Bay Co. is closing its 15 Hudson's Bay stores in the Netherlands, as well as its e-commerce site and headquarters in the country by the end of the year. The company says it has come to an agreement with local unions to offer solutions for employees impacted by the closure. The union says there are 1,424 employees, although it's not clear how many are full-time and how many are part-time. HBC opened its first Hudson's Bay store in the Netherlands in 2017 as part of its growth strategy in Europe, but has since shifted to focus fully on North America.Choice Properties Real Estate Investment Trust. (TSX:CHP.UN). Up five cents to $14.40. Choice Properties Real Estate Investment Trust has signed a deal to sell 30 properties in mostly smaller communities across Canada for $426 million. The buyer was not immediately identified. The portfolio includes 27 stand-alone retail properties and three distribution centres. They have an average lease term of approximately 12 years with Loblaw Companies Ltd., an affiliated company. The buyer also has an option to acquire two additional stand-alone retail properties for $29 million. This report by The Canadian Press was first published Sept. 20, 2019.The Canadian Press
Hudson’s Bay Co. will close its 15 department stores in the Netherlands and lay off around 1,400 employees as it shrinks its European operations, according to a report from Dutch newspaper Het Financieele Dagblad.
TORONTO — Hudson's Bay Co. is closing its 15 Hudson's Bay stores in the Netherlands, as well as its e-commerce site and headquarters in the country by the end of the year.The company says it has come to an agreement with local unions to offer solutions for employees impacted by the closure.The union says there are 1,424 employees, although it's not clear how many are full-time and how many are part-time.HBC opened its first Hudson's Bay store in the Netherlands in 2017 as part of its growth strategy in Europe, but has since shifted to focus fully on North America.In June, the company announced a deal to sell its remaining stake in its German real estate joint venture and sell its related retail joint venture to its partner, Signa.As part of the agreement, HBC assumed ownership of the Dutch retail business. HBC said at the time it had hired a financial adviser to review its options for the operations, which had not performed to expectations. This report by The Canadian Press was first published Sept. 20, 2019.Companies in this story: (TSX:HBC) The Canadian Press
HBC (HBC.TO) today announced that HBC Netherlands BV will close its 15 Hudson’s Bay stores, e-commerce site and headquarters in the Netherlands on or before December 31, 2019. Hudson’s Bay Netherlands is owned by a retail joint venture of SIGNA Retail Holdings and HBC, comprising German, Belgium and Netherlands operations.
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TORONTO — 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.The owner of the Hudson's Bay chain of department stores, as well as the New York-based Saks Fifth Avenue luxury chain and Saks Off 5th outlets, said the loss amounted to $5.35 per share for the quarter ended Aug. 3.That compared with a year-earlier loss of $280 million or $1.45 per share.HBC's overall revenue totalled $1.9 billion, roughly the same as a year ago, while comparable sales fell 0.4 per cent.Comparable sales at the Hudson's Bay chain fell 3.4 per cent in the quarter. Saks Fifth Avenue’s comparable sales grew 0.6 per cent, while Saks Off 5th comparable sales increased 3.4 per cent.Hudson's Bay officials said in a conference call that the second quarter was disappointing, but expressed confidence that they're taking the steps necessary build to build its two core retail businesses and to find value from its real estate."At Saks Fifth Avenue, we feel strongly about our position in an increasingly competitive environment and remain committed to driving further upside to this business," HBC chief executive Helena Foulkes said."For Hudson's Bay, we are continuing to fix the fundamentals within our merchandise strategy and service model."Foulkes said there is more to be done to re-invigorate The Bay's product lineup to be more appealing to a slightly more upscale customer but repeatedly expressed confidence that it has a distinctive, valuable role to play for the long-term."Even so, on a two-year basis, Hudson's Bay (comparable sales) declined four per cent — a clear signal that we have more work to do."Foulkes, who has been bluntly critical of The Bay's attempt to woo former customers of Sears Canada with middle-of-the-road merchandise and price discounting, said Thursday that HBC has cut out more than 300 unproductive brands.The Hudson's Bay stores that remain in its lineup are profitable so no closures are planned, she said, but HBC is looking at different uses for space within the locations — such as WeWork short-term office space in Toronto.Merchandise brands are also interested in entering the Canadian market through the Bay stores, she said."For 50 per cent of Canadians, they live within 16 kilometres of our store. I think that speaks to the overall brand we have in the country."The results came as HBC's independent directors evaluate an offer by a group of shareholders led by executive chairman Richard Baker, who want to take the company private at a price of $9.45 per share.The deal is opposed by other investment firms including Catalyst Capital Group Inc., which revealed in a regulatory filing this week that it controlled about a 16 per cent stake in HBC, as well as Land & Buildings Investment Management. HBC's shares traded Thursday in a narrow range between $9.77 and $10.13 in Toronto, above the Baker group's offer and closer to the $10.11 per share that Catalyst said it paid to buy 18.5 million shares last month.Among the one-time items in HBC's most recent quarter that added to its net loss was a $150-million non-cash writedown of the value of Canadian deferred income tax assets, which may not be fully usable.Other unusual items were related to the closure of HBC's Home Outfitters chain in Canada and some Saks Off 5th locations. There were also items related to a change in vendor relationships.Excluding one-time items, HBC says its normalized net loss for the quarter was $171 million or 93 cents per share, compared with a normalized net loss of $85 million or 46 cents per share in the same quarter last year.Analysts had estimated an adjusted loss of 73 cents per share with about $2.1 billion of revenue for the quarter, according to financial markets data firm Refinitiv.In August, HBC announced it will sell its Lord & Taylor banner to Le Tote, a clothing rental company.That follows HBC's previously announced plan to sell its remaining German holdings for $1.5 billion to its joint venture partner, a deal that was announced almost simultaneously with the Baker group's offer to take the company private. HBC executives said Thursday that the process for selling the German holdings has advanced but hasn't yet closed. Companies in this story: (TSX:HBC)David Paddon, The Canadian Press
Hudson’s Bay Co. reported a growing net loss on Thursday, as the retailer closes stores, changes its product lineup and grapples with struggling sales at its namesake department store chain.
TORONTO & NEW YORK-- -- Revenues totaled $1.9 billion, with comparable sales down 0.4% including a 19% year-over-year increase in digital sales Saks Fifth Avenue’s comparable sales up 7.3% on a two-year stacked basis, which includes 0.6% comp in the second quarter Saks OFF 5TH’s comp sales up 3.4% driven by new customer growth Continued inventory and expense discipline with comparable inventory down ...
The last two remaining locations of discount retailer Zellers will shutter its doors early next year, says Hudson's Bay Co."Through the normal course of business we continually evaluate store performance and other factors, and may determine it necessary to close a store," spokeswoman Tiffany Bourre wrote in an emailed statement.The retailer expects to close the Toronto and Ottawa locations in January 2020.Bourre declined to specify how many employees work at the stores, saying "we do not break out store employment numbers."Eligible employees will receive employment separation packages and the company will explore transfer opportunities where it is feasible, she said.Waterloo County, Ont.-born Walter Philip Zeller started the company in 1928 with four stores in Ontario.But an American firm bought him out and subsequently went bankrupt during the Great Depression. Zeller purchased back the Canadian properties, which had grown to 14 locations by then.He reopened a dozen of the stores in Ontario, Quebec and New Brunswick as Zellers in 1932.HBC became the sole owner of Zellers in 1978.In 2011, the company reached a roughly $1.8-billion deal to sell the leases of 189 Zellers stores to Target and close the remainder — save for three locations — by March 2013.Of the three locations, Montreal and Surrey closed in 2014. That same year, the Ottawa location re-opened, leaving it and Toronto store as the sole remaining Zellers stores. Companies in this story: (TSX:HBC)Aleksandra Sagan, The Canadian Press
HBC will announce financial results for the second quarter 2019 on Thursday, September 12, 2019 before market hours. Chief Executive Officer Helena Foulkes, and Interim Chief Financial Officer Becky Roof will subsequently host a conference call to discuss the company’s results at 8:30 a.m.
Trading in Hudson’s Bay Company (TSX:HBC) stock was temporarily suspended Wednesday morning as news of the sale of Lord & Taylor was announced.
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."Hudson's Bay Co. will receive $99.5 million in cash from Le Tote for its Lord and Taylor banner when the deal closes, the company said Wednesday, and a secured promissory note for $33.4 million payable in cash after two years.HBC will also receive a 25-per cent equity stake in Le Tote, two seats on the company's board of directors and certain rights as a minority shareholder.The deal, which is expected to close before the start of this year's holiday season and comes following a strategic review for alternatives for the banner, marks an exciting new phase for both businesses, said Helena Foulkes, HBC's CEO, in a post on LinkedIn.HBC declined an interview request, saying the CEO was unavailable.San Francisco-based Le Tote offers monthly subscriptions for boxes containing several piece of clothing and accessories. Customers can browse online and choose the items they want to rent. The private company, founded in 2012, has raised more than US$75 million in venture capital, according to its LinkedIn page, and has partnerships with hundreds of brands, such as Nike and Calvin Klein. It has more than 200 employees.Lord and Taylor, meanwhile, sells clothing for men, women and kids, as well as accessories and beauty products online and in stores. It also offers a selection of home products, including bedding and home decor.Since this acquisition is a combination of cash and equity, it's likely the buyer — a relatively new company funded by venture capital — didn't have the money for a clean acquisition, said Kai Li, a professor of finance at the University of British Columbia's Sauder School of Business.A clean deal would have been just cash, she added.The equity stake would be of "secondary importance" to HBC, said Li, as the retailer seems to be looking to rid itself of Lord and Taylor, a non-essential asset, as part of its turnaround effort amid years of disappointing results.The companies will combine data-driven rental subscriptions, online shopping and bricks-and-mortar locations to create a modern service model, said Foulkes, calling it "a first in the industry."HBC's stake in Le Tote will give it "a meaningful position to share in the success of this new company," but also enable the retailer to focus on its greatest opportunities: Saks Fifth Avenue and Hudson's Bay.Le Tote management said the deal will bring customers an enhanced experience — with its website informing shoppers to "get excited for more brands, styles and 1,000s of options" thanks to the acquisition."With this acquisition, we continue our journey in creating the future of retail," said Rakesh Tondon, Le Tote's chief executive and founder, in a statement.Companies such as Le Tote — with business models that combine subscriptions and selling gently used goods online — "are well positioned to grow 20 per cent or higher annually," wrote Oliver Chen, an analyst with Cowen Inc.The real estate details of the deal also seem to work in Le Tote's favour. The subscription box company will assume operations of 38 Lord and Taylor stores.HBC and HBS Global Properties, HBC's real estate joint venture, will retain ownership of all owned and ground-leased real estate assets related to Lord and Taylor.However, for at least the initial three years, HBC has agreed to maintain responsibility for the rent owed by Lord and Taylor at the locations operated by Le Tote. HBC expects to be liable for approximately $77 million in Lord and Taylor total cash rent on an annual basis.Businesses like Le Tote "will increasingly look at physical points of distribution or partners in order to drive awareness, adoption and customer acquisition as this market grows," said Chen.The deal to sell the banner comes as a group led by HBC chairman Richard Baker looks to buy the entire company and take it private.The Baker group has offered $9.45 per share for HBC, however an initial analysis by the company has suggested the offer is "inadequate."The privatization deal also faces opposition from Catalyst Capital Group Inc., which recently acquired a roughly 10 per cent stake in HBC, and activist investor Land and Buildings Investment Management LLC.A spokesperson for the shareholder group seeking privatization declined to comment, as did Land and Buildings.It's possible HBC's streamlining of operations by ridding itself of non-essential assets like Lord and Taylor could result in a higher valuation for any potential privatization or takeover, said Li.HBC shares closed up six cents or 0.59 per cent at $10.22 on the Toronto Stock Exchange Wednesday after reaching a high of $10.40 earlier in the day. Companies in this story: (TSX:HBC)Aleksandra Sagan, The Canadian Press