Does Hudson’s Bay Want Saks?

A report in Women’s Wear Daily this morning contends that Hudson’s Bay Co. (Toronto) is seriously looking to buy Saks Inc. (New York).

WWD sources say that HBC’s chairman and ceo Richard Baker, chairman and chief executive officer and his team have been  working on a deal out of Hudson’s Bay’s U.S. headquarters, the Lord & Taylor flagship store on 39th Street and Fifth Avenue in New York, just 12 blocks from the Saks flagship.

However, noted WWD, “Saks might be considered expensive at the current price of its stock,” and compensation for departing Saks executives, prompting a source to say, “Hudson’s Bay has never paid full price for anything. They are bargain hunters.”

Baker has long been known to be interested in purchasing Saks and in past years has met with Saks management to discuss the possibility. WWD speculated that not only could Hudson’s Bay open Saks Fifth Avenue stores and Saks Off-5th outlets in Canada – maybe even converting existing Hudson’s Bay stores to Saks – but could also convert some of its Lord & Taylor locations in the U.S. to Saks stores,  or convert Saks stores to the Lord & Taylor nameplate.

HBC operates 90 Hudson’s Bay stores and 69 Home Outfitters stores across Canada, and 48 Lord & Taylor stores and three L&T outlets in the U.S.