Saks Fifth Avenue Parent Hudson’s Bay Reviewing Strategic Options In Tough Retail Environment

by MR Magazine Staff

Analysts at TD Securities say reports that management at Lord & Taylor and Saks Fifth Avenue parent Hudson’s Bay Co. HBC, +3.49% is considering taking the company private could potentially be positive. Hudson’s Bay shares rose roughly 14% Friday afternoon following media reports that management is looking to carry out a review of its options, including possibly privatizing the company. “[Hudson’s Bay] appears to be focused on improving its retail results through further investment in its operations, cost-cutting and organic growth within both Europe and North America,” analyst Brian Morrison wrote in a note to investors. “Clearly, activist investor Jonathan Litt opposes HBC’s current strategy, stating that he may be forced to call a special meeting to remove directors if HBC does not take actions to implement a plan to close the gap between underlying value of its asset base and share price.” Read more at Market Watch.