Hudson's Bay CEO Steps Down From Saks Parent Company As It Goes Private

Hudson’s Bay Co. HBAYF CEO Helena Foulkes will leave Canadian retailer as the company goes private. 

Hudson's Bay Closes Take-Private Deal 

Foulkes is set to leave Hudson’s Bay March 13, with Executive Chairman Richard Baker taking her place, the company said in a press release.

Foulkes became the CEO in 2018 after a stint at CVS Health Corp CVS. 

The deal to take Hudson’s Bay private was made last week. The deal, which was approved by shareholders, closed Tuesday and involves taking the company private for CA$11 ($8.25) per share.

Baker hails from a real estate background. His firm purchased Lord & Taylor for $1.2 billion in 2006. His current and previous retail enterprises span Hudson’s Bay in Canada, Saks Fifth Avenue, Galeria Kaufhof in Germany and the online venture Gilt Groupe. 

Struggling Retail Landscape 

Department stores have been facing tough competition from online peers. Hudson’s rival Macy’s Inc M announced last month that it plans to close 125 stores.

Hudson’s Bay was targeted by activist investor Land & Buildings Investment Management LLC in 2017. The activist wants the company to turn its prime real estate — including the Saks Fifth Avenue store in Manhattan — into commercial real estate, hotels or boutiques, according to The Wall Street Journal. 

During Foulkes’ tenure Hudson’s European operations, as well as Lord & Taylor, were divested. 

Hudson's Bay Price Action

Hudson's Bay over-the-counter shares were 0.3% higher at $8.21 at the close Tuesday. 

Outgoing Hudson's Bay CEO Helena Foulkes. Image by Digitas Photos via Wikimedia.