Hudson’s Bay Company (HBC) said it is conducting a strategic review to assess the “greatest opportunities” for Lord & Taylor’s future. The company said it has retained PJ Solomon to serve as a financial adviser during the review, which it plans to conduct “as efficiently as possible.”
“This review of strategic alternatives for Lord + Taylor is another example of how we are exploring options to position HBC for long-term success,” said Helena Foulkes, HBC’s chief executive officer. “Over the last year, we’ve taken bold actions and made fundamental fixes that have resulted in a far stronger, more capable HBC, having returned to positive operating cash flow, increased profitability and strengthened the balance sheet.”
The review comes as Lord & Taylor and other traditional retailers struggle to maintain sales as fewer shoppers go to malls and brick-and-mortar locations. Hudson’s Bay said same-store sales at its namesake brands, Lord & Taylor and Home Outfitters, declined by 5.2 percent in the fourth fiscal quarter of 2018.
Hudson’s Bay is in the process of reorganizing its business, cutting costs while investing in its e-commerce operations. The company sold Lord & Taylor’s flagship store on Fifth Avenue in New York City to WeWork in a transaction that closed earlier this year.