Hudson's Bay Company acquiring Neiman Marcus for US$2.65 billion
Canadian business group and retailer Hudson’s Bay Company is buying out US-based luxury department store chain Neiman Marcus.
The Wall Street Journal first broke the news on Wednesday. On Thursday, Saks Fifth Avenue made a formal announcement.
After several months of negotiations, the US$2.65 (or C$3.61) billion acquisition has been approved.
“Upon closing, which will happen after customary regulatory review, HBC will establish Saks Global, a technology-driven company positioned to succeed in the rapidly evolving luxury retail industry. Saks Global will comprise the Saks Fifth Avenue and Saks OFF 5TH brands, Neiman Marcus and Bergdorf Goodman, as well as HBC’s US real estate assets and Neiman Marcus Group’s real estate assets,” a Saks press representative said in an email to Daily Hive.
Hudson’s Bay Co. acquired Saks Fifth Avenue in 1998.
Saks Global will create a “$7 billion portfolio of well-located retail real estate assets in top-tier luxury shopping destinations.” Ian Putnam, President and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage, maximize and enhance the company’s robust portfolio of assets. Both Mr. Metrick and Mr. Putnam will report to Mr. Baker, who will serve as Executive Chairman of Saks Global.
Marc Metrick, CEO of Saks, is anticipated to take on the role of Saks Global’s CEO, leading its retail and consumer businesses and driving the strategy to advance the luxury shopping experience.
Meanwhile, Ian Putnam, who currently serves as president and CEO of Hudson’s Bay Company Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage, maximize and enhance the company’s robust portfolio of assets.
JHVEPhoto/Shutterstock
E-commerce giant Amazon and software company Salesforce — both currently doing business with Saks — will have minority stakes in the new company and handle logistics, artificial intelligence, and other tech.
“Rhône Capital, a transatlantic middle-market private equity firm and affiliated investment entities, will continue as the active lead investor in Saks Global. Global software investor Insight Partners, an investor in Saks.com, will be a shareholder in the new company. Salesforce will also become an investor at closing,” a release about the acquisition further reads.
A rocky recent past
In March 2022, Hudson’s Bay closed its massive and historical Toronto store. The company laid off over 600 employees a year before shuttering, citing COVID-19 lockdown pressures.
In January last year, the company axed 2% of its corporate employees, followed by multiple store closures across Canada.
In an earlier email to Daily Hive, Hudson’s Bay Deputy Vice President Tiffany Bourre confirmed that the step was taken due to significant external pressures on Canada’s retail sector.
“[The company] is realigning its strategic priorities and increasing efficiencies within its operations,” she said.
“While these decisions are not easy, we are committed to treating everyone with fairness and respect,” Bourre added in a response to Daily Hive.
Just months later, another round of layoffs followed, and 250 employees were let go. Bourre said the retail giant had “worked hard to minimize the impacts” on its associates, expecting economic pressures to ease.
“However, they have persisted longer than we had hoped, which has made these changes necessary,” said Bourre.
Daily Hive has contacted Hudson’s Bay Co. and will update this story when it responds.
Follow Channels and Categories