Hudson's Bay receives $4.5 billion bid for its German stores: report

Nov 2 2017, 12:00 am

In another turbulent development for the iconic Canadian-based retailer, Hudson’s Bay Company (HBC) has received a bid for Galeria Kaufhof, its department store chain in Germany.

In a statement issued today, the company says it has received an “incomplete, non-binding and unsolicited offer with no evidence of financing” from SIGNA Holding GmbH, which is what HBC calls the “company’s principal German competitor”.

“Consistent with its fiduciary responsibility, the Board intends to review the offer in due course, and cautions that the offer is subject to many assumptions, conditions and contingencies,” the statement continues.

HBC did not provide any further details, but sources told Reuters that SIGNA Holding’s offer is €3 billion (CAD$4.5 billion).

Shares of HBC soared by 7% to $12.04 over the market speculation news earlier in the day, with trading temporarily suspended at approximately noon EDT.

This development follows HBC’s recent decision to divest some of its major North American properties.

Last week, HBC announced it is selling its Lord & Taylor flagship store in New York City to co-working space company WeWork for $1 billion. As part of the deal, WeWork will expand its business into the top floors of the Hudson’s Bay department stores on Queen Street in downtown Toronto, Granville Street in downtown Vancouver, and Galeria Kaufhof in Frankfurt.

And earlier this week, the company confirmed it is exploring selling its downtown Vancouver flagship store, which is reportedly worth nearly $1 billion. HBC says it intends to continue its operations after a sale through a lease-back arrangement.

It was also announced last month that Jerry Storch, the CEO of HBC, will depart the company effective today, November 1.

See also
Kenneth ChanKenneth Chan

+ News
+ Venture
+ Fashion & Beauty
+ Shopping