I would have covered this story sooner except that, like many Canadians, I find it hard to get too interested in HBC.
Globe and Mail: HBC unit sale a sign of things to come?
Globe and Mail: HBC unit sale a sign of things to come?
Hudson's Bay Co. is looking at unloading its Designer Depot division, signalling what industry insiders think could be the start of a broader selloff by new owner Jerry Zucker as he tries to get better returns from the business.
Industry sources said HBC is in talks with Canadian retail magnate Isaac Benitah, whose chains include Labels, a fashion discounter with a concept similar to Designer Depot. HBC spokeswoman Hillary Marshall would say only that HBC is “looking at its options” for that chain.
The move appears to be part of a wider effort by Mr. Zucker, a South Carolina-based businessman, to pare costs after the department store retailer endured what many analysts believe was a tougher-than-expected holiday season.
I don't have a lot to add about this, except to say that really the only value remaining in the HBC brand is what can be sold off after carefully unwinding the company's debts.
In times past, I would have dug up an inside scoop on this, except that by now, everyone I knew at HBC has either quit or gotten fired.*
It's worth mentioning that the comments section in the article above is filled with good, albeit bitter, insight from people who are obviously ex-senior HBC management. Former insiders are pretty much the only people who would care enough to leave a comment on the article. Heaven knows, everyday shoppers aren't too interested in the company's fortunes.
Really though, any more discussion would be:
*mostly the latter. If you have 25 years of seniority, it's generally in your best interest to make them terminate you: who wants to walk away from a six figure severance package?
No comments:
Post a Comment