HBC received unsolicited offer
Company has given no indication that it has an interest in selling its German business
TORONTO — Hudson’s Bay Co. says it has received an offer from European retail competitor SIGNA Holding for its German department store chain Galeria Kaufhof and other real estate assets.
The company confirmed the unsolicited offer on Wednesday after trading of its shares was temporarily suspended on the Toronto Stock Exchange.
The company’s stock had been up about seven per cent higher on the day prior to the halt and was trading 9.49 per cent higher at $ 12.35 per share shortly after the suspension was lifted in the early afternoon.
Hudson’s Bay has given no indication that it has an interest in selling its German business.
“As we’ve previously stated, our European business is an important element of the Company’s strategy,” it said in a statement.
“HBC remains focused on executing its strategy and plans for the upcoming holiday season.”
The retailer acquired Galeria Kaufhof in 2015 as part of a $ 3.2- billion deal that included Belgian retailer Galeria Inno and other real estate assets. The takeover included more than 103 Galeria Kaufhof stores, 16 Sportarena stores and 16 Galeria Inno stores.
It’s been a tumultuous couple of months for the retailer, which sold its storied Lord & Taylor property in the heart of New York City in October after an activist investor threatened to seek the removal of company directors unless it unlocked the substantial value in its real estate holdings.
Hudson’s Bay management had been under pressure for months from Land & Buildings Investment Management, which has argued HBC’s stock price is undervalued.
As part of the $ 1.6- billion Lord & Taylor deal, Hudson’s Bay has said it would also lease out office space in its other locations, including floors of its downtown Toronto and Vancouver locations.
Earlier in the week, however, it said it may sell its Vancouver property.
Former CEO Gerald Storch also announced last month that he was leaving the company to return to his consulting firm in November — less than two months after he helped bring the Canadian retail chain to an international market.
Richard Baker, whom Storch succeeded in the top role and who has resumed the CEO’s duties on an interim basis, has been specifically targeted by Land & Buildings.
The U. S. investment firm has said Storch’s departure would not solve the problem of HBC’s stock price, adding that Baker is the bigger problem as far as it is concerned.
Hudson’s Bay has been struggling in a shifting retail landscape where consumers are increasingly turning to online shopping. This summer, the company announced it was cutting 2,000 jobs.
The company said it will not comment further about speculation surrounding its German business assets unless required by law.