Hudson’s Bay Co. to exit its European JV for $1.1b
Canadian retailer Hudson’s Bay Co. has plans to sell its remaining European real estate with Signa Retail Holdings and divest the related retail properties for $1.13 billion.
Last year, HBC’s Kaufhof and Signa’s Karstadt merged to form Germany’s biggest department store group. The group owns the Belgian Galeria Inno chain and 15 stores in the Netherlands.
The struggling retailer has been actively shedding assets; however, the company’s stock continues to decline. This plan also coincides with plans being announced that the retailer is in talks about taking the company private. Hudson’s Bay Co. chairman Richard Baker has teamed up with investors, including Rhone Capital LLC and WeWork Property Advisors, to offer a cash bid valued at about $1.31 billion to take the company private.
Going private will give Hudson’s Bay more flexibility to try new ideas as the company refocuses on North America, said Poonam Goyal, an analyst at Bloomberg Intelligence.