![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
rfmcdonaldThe Ottawa Citizen is not alone in noting the latest events encountered by the Hudson's Bay Company.
I find a certain pathos in the fact that the HBC, at its 19th century peak a great commercial monopoly that acted as the semi-sovereign authority of most of north-central North America, is now just another department store chain facing serious problems only with nice historic blankets.
Hudson's Bay Co., the Canadian retailer whose name is synonymous with the country's frontier past, was bought yesterday by the U.S.-based private equity fund that owns the Lord & Taylor department store chain, one of the oldest names in American retailing.
NRDC Equity Partners did not place a value on the deal, but said it would invest $500 million into the combined company, which also owns specialty U.S. retailer Fortunoff and Creative Design Studios.
Founded in 1670, Hudson's Bay Co. is North America's oldest continuously operating company. Its banners include The Bay, Zellers and Home Outfitters, and it has more than 580 stores nationwide.
With yesterday's deal, the combined companies will make up more than $8 billion in retail sales and employ 75,000 employees, NRDC said.
Richard Baker, NRDC's current CEO, who will serve as the head of the new holding company called Hudson's Bay Trading Co., said in an interview that the deal will allow for a huge potential in synergies.
Lord & Taylor could launch 10 to 15 stores in Canada in an effort to bridge the gap between The Bay and the more high-end Holt Renfrew. The stores would be in prime locations, either through existing HBC properties or within flagship Bay stores.
Mr. Baker said the company could take "oversized" Bay locations, such as its 900,000-square-foot store in downtown Toronto, and better utilize the space by putting in a Lord & Taylor or Fortunoff as well.
"Part of the problem The Bay has is they have too many way oversized stores in great markets, and we have the answer, we're going to solve the problem," he said.
I find a certain pathos in the fact that the HBC, at its 19th century peak a great commercial monopoly that acted as the semi-sovereign authority of most of north-central North America, is now just another department store chain facing serious problems only with nice historic blankets.
