(Toronto) Hudson’s Bay Company (HBC) has announced a deal to buy luxury department store rival Neiman Marcus for US$2.65 billion.
The deal announcement follows months of speculation that HBC would buy the chain, whose website lists 36 locations in the United States selling designer clothing, accessories and housewares.
HBC says the plan includes spinning off Neiman Marcus and its other international assets, including Saks Fifth Avenue and Bergdorf Goodman, into a new entity called Saks Global.
These entities will continue to operate under their current names.
HBC positions Saks Global as a collection of premium international brands.
“We are thrilled to take this step forward in bringing together these iconic names in luxury,” HBC CEO Richard Baker said in a press release.
As for Hudson’s Bay itself, the company says it intends to re-establish HBC’s Canadian store and online retail operations as a standalone entity with significantly reduced debt and increased liquidity.
HBC has spent the past few years reorganizing its operations after closing Home Outfitters in 2019, the same year it sold Lord & Taylor to fashion rental subscription company Le Tote Inc.
THE Wall Street Journal first reported the deal with Neiman Marcus on Wednesday.