Saks Fifth Avenue, Lord & Taylor…Macy’s and Bloomingdale’s? All of these nameplates could be under one umbrella soon.
The Canadian company, which owns Saks and Lord & Taylor, has made an offer, and the two companies are in early talks. What the result might be is unclear. Beyond takeover, the two entities are considering other scenarios as well. For instance, Hudson’s Bay could be interested in Macy’s real estate.
Macy’s once a formidable giant, is feeling some Goliath-sized pain lately. The company’s latest earnings report stated holiday comp store sales declined by 2.1%. In 2016, the retailer began closing a planned 100 doors, and then last month news came that it would cut 10,000 jobs. In its weakened state and with long-time head Terry Lundgren stepping down as CEO later this year, the company is prime for a deal.
With a reported market value of $1.4 billion dollars, Hudson’s Bay is tiny compared to Macy’s but an expert following the developments said the company could raise funding against its $14 billion in real estate.
The Journal cautions that taking on Macy’s would mean taking on its $7.5 billion in debt as well.
Neither company has commented.