- Prachi Singh
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Hudson’s Bay Company (HBC) has announced the closure of its Home
Outfitters business in Canada and is performing a fleet review of Saks Off
5th’s 133 stores, with an estimate of closing up to 20 locations in the US.
The company said, these actions are part of the company’s strategic plan to
reduce costs, simplify the business and improve overall profitability.
“Further streamlining our retail portfolio enables even greater focus on
our businesses with the strongest growth opportunities. The divestiture of
Gilt, rightsizing of Lord & Taylor, the recent merger of our European
retail operations in Germany, and today’s announcement exemplify the bold
strategic actions we are taking to set HBC up for long-term success,”
said Helena Foulkes, HBC’s Chief Executive Officer in a statement.
The company added that Home Outfitters is expected to close in 2019. The
vast majority of markets in which it operates are served by Hudson’s Bay,
which includes home furnishings departments and accepts Home Outfitters
gift cards. Once completed, HBC expects these closures to be slightly
favourable to adjusted EBITDA.
