Canadian retailer group Hudson's Bay Company (HBC) is considering a offer for its German business, after its principal German competitor Signa Holding made what HBC said was an 'incomplete and unsolicited' offer for its Kaufhof department store operation and real estate.
According to news reports, activist shareholder Jonathan Litt of Land & Buildings has urged HBC to seriously consider the offer, after placing pressure on the company to liquidate its real estate assets in recent months.
HBC acquired Kaufhof in 2015 as part of a $3.2 bn pan-European operations and property deal that included Belgium's Galeria Inno chain. However, the once highly successful global department store retailer currently holds property worth five times its total retail value. Hedge fund Land and Buildings stepped up its interest in Hudson's Bay to 4.3% in June.
Last week, HBC sold its flagship Lord & Taylor property on Fifth Avenue in New York to WeWork Property Advisors for $850 mln (€645 mln), and inked an agreement allowing flexible office concept WeWork to leverage its global property platform, including the assets in Germany and Belgium. The sale came after the resignation of CEO Gerald Storch.
HBC confirmed on 1 November that it had received the offer, which it characterised as 'an incomplete, non-binding and unsolicited offer with no evidence of financing from Signa Holding, the owner of the company's principal German competitor'.
'Consistent with its fiduciary responsibility, the board intends to review the offer in due course, and cautions that the offer is subject to many assumptions, conditions and contingencies. As we've previously stated, our European business is an important element of the company's strategy. HBC remains focused on executing its strategy and plans for the upcoming holiday season,' HBC said.
