TORONTO – Hudson’s Bay Co. has announced a deal to buy luxury department store rival Neiman Marcus for US$2.65 billion.
News of the deal follows months of speculation that HBC would buy the chain, whose website lists 36 U.S. locations selling designer apparel, accessories and housewares.
HBC says the plan includes spinning off Neiman Marcus with its other international assets, including Saks Fifth Avenue and Bergdorf Goodman, into a new entity called Saks Global.
Those entities will continue to operate under their existing names.
HBC is positioning Saks Global as a collection of international high-end brands.
“We’re thrilled to take this step in bringing together these iconic luxury names,” said Richard Baker, HBC’s chief executive, in a press release.
As for Hudson’s Bay itself, the company says it intends to re-establish HBC’s Canadian business of stores and online retailing as a stand-alone entity with significantly reduced leverage and enhanced liquidity.
HBC has spent recent years working to revamp its operations after closing Home Outfitters in 2019, the same year it sold Lord & Taylor to fashion rental subscription company Le Tote Inc.
The Wall Street Journal first reported the Neiman Marcus deal Wednesday.
This report by The Canadian Press was first published July 4, 2024.
