Shareholders of Hudson’s Bay Co. (HBC) have voiced a number of concerns, including the firm’s stagnant share price and its operations in Europe.
Minority shareholder Land and Buildings Investment Management recently increased its shareholdings from 4.3% to 5%, giving it the power to call a shareholder meeting.
HBC has estimated that its own property holdings are value at $6.4bn, working out in excess of $35 per share. However, the company’s shares have most recently been selling for just $10.67.
With the share price down as much as 58.6% from August last year, Land and Buildings have called for a significant reform of HBC’s property holdings so that this value is reflected in the share price.
Suggestions that shareholders have made to achieve this include the redevelopment of the flagship Saks Fifth Avenue store, withdrawal from Europe to focus on maximising potential in Canada, and privatisation of the firm.
Land and Buildings Investment Management Founder and CEO, Jonathan Litt, said that if adequate action is not taken then he will be intervening to protect the company’s investment interests.
“If left with no other choice, we believe it will be necessary to call a special meeting of shareholders to remove board members.”