Canadian retail giant Hudson’s Bay Company (HBC) has announced it is to sell its remaining European real estate.
It will also divest its retail joint venture to its partner SIGNA, for a sum of CA$1.5bn (US$1.13bn). $436mn of that figure will be used to repay an outstanding loan.
The move will see the company withdraw from its German operations, while assuming ownership of its underperforming Netherlands retail business. The company said it would review its cost savings options, and could close certain stores.
Helena Foulkes, CEO of HBC, said: “This agreement is an exciting milestone for HBC as it will deliver important financial and strategic benefits. Financially, it provides us with the best opportunity to capitalize on our German real estate and allows us to further strengthen our balance sheet. Strategically, we will be able to fully focus our resources on HBC’s North American operations, including our best growth opportunities - Saks Fifth Avenue and Hudson’s Bay. This transaction is another bold action that unlocks the value of our real estate and demonstrates our resolve to creating a stronger, more capable HBC.”
One of North America’s oldest companies, HBC is the owner of department stores such as the eponymous Hudson’s Bay and others such as Lord & Taylor. They are listed on the Toronto Stock Exchange under the symbol “HBC”.