Hudson’s Bay Co. a potential suitor for Saks

Hudson’s Bay Co., which operates department stores in Canada and owns Lord & Taylor in the U.S., has emerged as a potential suitor for Saks Inc., according to a person familiar with the matter

Saks recently tapped Goldman Sachs Group Inc. to explore strategic alternatives for the company, which operates the Saks Fifth Avenue luxury department stores and Off-5th outlets, people familiar with the situation said.

Richard Baker, chief executive of Hudson’s Bay, has long been interested in Saks for the potential of its real estate, the person familiar with the matter said. Hudson’s Bay could convert some of itsCanadian stores to Saks or Off5th locations, while Lord & Taylor could take over some Saks leases in the U.S., the person said.

Saks has been trying to shed stores, and some analysts predict it could close roughly half its locations in coming years.

Women’sWear Daily earlier reported on Hudson’s Bay’s interest.

Separately, Saks’ main rival, Neiman Marcus Inc., on Monday filed papers for an initial public offering.

Neiman Marcus recently rebuffed a proposal in which buyout firm KKR & Co. would invest in Saks and the two luxury retailers would merge, people familiar with the situation. have said.

A potential wrinkle in any deal to sell Saks is the run-up in the company’s share price since news emerged in May that the company was considering strategic alternatives. Saks shares rose 10 cents Monday to close at $13.49.