HBC activist revives call for changes

Activist investor Jonathan Litt is renewing his calls for change at Hudson’s Bay Co., saying he intends to talk to fellow investors about calling a special meeting to elect new board members.

“We believe Hudson’s Bay could see its share price double or triple if the company takes the necessary steps to maximize longterm shareholder value,” Litt said in a letter to shareholders Wednesday.

An HBC representative didn’t immediately respond to a request for comment.

Litt’s Land & Buildings Investment Management has been advocating since June 2017 for changes at the Toronto-based retailer, including calling for it to sell off its Saks Fifth Avenue brand and to explore ways to unlock the value of its real estate. He reiterated his call for the company to sell Saks in the letter Wednesday. He also said it should sell its remaining interests in Galeria Kaufhof in Germany and the Lord & Taylor brand.

It should also pursue a real estate investment trust structure for its Canadian real estate and sublease its excess space, Litt said.

HBC has taken several steps to unlock the value of its real estate in recent months, including selling its flagship Lord & Taylor building in Manhattan, selling part of its European business, and modifying the lease on a store slated to be closed in Vancouver.

Changes are needed at the board level, Litt said, noting he is working with a former HBC executive who would likely join a slate of directors he would put forth.