Hudson’s Bay rallies as activist asks it to explore options
Hudson’s Bay, which for five consecutive quarters has reported declines in sales at established stores, said it was reviewing a letter from Land & Buildings, which owns a 4.3 percent stake in the company.
The Canadian retailer’s shares hit a record low on Friday, having lost a third of their value so far this year, amid the disappointing results and after it announced a major restructuring plan earlier this month that includes 2,000 job cuts.
In a letter to the board of Hudson’s Bay, Land & Buildings founder Jonathan Litt called on the company to consider going private or selling its vast real estate holdings.
“With a modest market cap of $1.2 billion, and insider ownership of about 20 percent, a go-private transaction could be readily financed,” Litt said in the letter.
Land & Building said the real estate assets were worth C$35 per share, nearly four times Hudson’s Bay’s closing price on Friday.
The stock was up 15.8 percent at CS10.28 in morning trading after rising as high as C$10.45.
Hudson’s Bay’s real estate portfolio includes its Saks Fifth Avenue flagship store in New York, valued at $3.7 billion in 2014, and its Lord & Taylor flagship, valued at $655 million in 2016, according to the company.
© Thomson Reuters 2017 All rights reserved.
# Hudson’s Bay,# Lord & Taylor,# Saks Fifth Avenue