TORONTO & NEW YORK–(BUSINESS WIRE)–HBC (TSX:HBC) today announced it is pursuing strategic alternatives for
the Lord + Taylor operating business, including a possible sale or
merger, as part of its strategy to focus on its greatest opportunities.
“This review of strategic alternatives for Lord + Taylor is another
example of how we are exploring options to position HBC for long-term
success,” said Helena Foulkes, HBC’s Chief Executive Officer. “Over the
last year, we’ve taken bold actions and made fundamental fixes that have
resulted in a far stronger, more capable HBC, having returned to
positive operating cash flow, increased profitability and strengthened
the balance sheet.”
Foulkes continued, “Lord + Taylor is a storied brand that has stood for
quality, style and service for many years and serves a highly engaged,
loyal customer base through a dedicated team of associates. Throughout
the review, Lord + Taylor remains committed to serving customers across
our stores and digital channels.”
HBC has been simplifying its organization, strengthening its retail
operations and unlocking the value of its real estate. The company is
also focused on improving its cost structure while making strategic
investments in technology and digital capabilities, marketing and stores.
HBC has retained PJ SOLOMON as its financial advisor for the review of
the Lord + Taylor operating business and the company is committed to
working through it as efficiently as possible.
About Lord + Taylor
Lord + Taylor has built its reputation on offering premium fashion
apparel and accessories at incredible value with seamless service. With
2018 annual revenue of CAD$1.4 billion, it serves customers through more
than 40 stores in the northeastern and mid-Atlantic US and its online
HBC is a diversified retailer focused on driving the performance of high
quality stores and their omni channel platforms and unlocking the value
of real estate holdings. Founded in 1670, HBC is the oldest company in
North America. HBC’s portfolio today includes formats ranging from
luxury to premium department stores to off price fashion shopping
destinations, with more than 300 stores and about 40,000 employees
around the world. HBC’s leading businesses across North America include
Saks Fifth Avenue, Hudson’s Bay, Lord + Taylor, and Saks OFF 5TH.
HBC also has significant investments in joint ventures. It has partnered
with Simon Property Group Inc. in the HBS Global Properties Joint
Venture, which owns properties in the United States. In Canada, it has
partnered with RioCan Real Estate Investment Trust in the RioCan-HBC
Joint Venture. HBC has partnered with SIGNA Retail Holdings for real
estate and retail joint ventures in Europe.
Certain statements made in this news release, including, but not limited
to, with respect to the company’s strategic focus, any outcome,
potential impact or timing of completing a strategic review of Lord +
Taylor and the review being undertaken by our financial advisor and
other statements that are not historical facts, are forward-looking.
There can be no assurance regarding the outcome of an exploration of
strategic alternatives for Lord + Taylor. Although HBC believes that the
forward-looking statements in this news release are based on information
and assumptions that are current, reasonable and complete, these
statements are by their nature subject to a number of factors that could
cause actual results to differ materially from management’s expectations
and plans as set forth in such forward-looking statements, including
many factors which are beyond HBC’s control and the effects of which can
be difficult to predict. For more information on the risks,
uncertainties and assumptions that could cause HBC’s actual results to
differ from current expectations, please refer to the “Risk Factors”
section of HBC’s Annual Information Form dated May 3, 2019, as well as
HBC’s other public filings, available at www.sedar.com
and at www.hbc.com.
The forward-looking statements contained in this news release describe
HBC’s expectations at the date of this news release and, accordingly,
are subject to change after such date.
Jennifer Bewley, 646-802-4631