Market Overview

HBC Provides Update on Lord & Taylor Fifth Avenue Building Sale

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HBC (TSX:HBC) today announced that it has entered into an amendment to
the purchase and sale agreement with an affiliate of WeWork Property
Advisors ("WPA") in respect of the Lord & Taylor Fifth Avenue building.
Pursuant to the amendment, the closing date of the sale has been
extended from August 10, 2018 to November 13, 2018, with an option for
WPA to exercise an additional extension to January 31, 2019. HBC may
also elect to extend the close to February 11, 2019 by providing notice
to WPA.

In addition to the U.S.$75 million deposit previously delivered by WPA
in connection with the signing of the original agreement, HBC has
received a second deposit in the amount of U.S.$25 million. This deposit
is non-refundable subject to certain limited exceptions. A third
deposit, also in the amount of U.S.$25 million, becomes due if WPA
elects to exercise their option to extend the closing date until January
31, 2019. Additionally, WPA will have the option to convert U.S.$125
million of the U.S.$850 million transaction value into an equity
interest in the building, to be held by HBC through a joint venture
structure. This equity interest is subject to certain return and
liquidity rights.

HBC intends to use the net proceeds from the deposit and sale of the
Lord & Taylor Fifth Avenue building to reduce indebtedness under its
asset-based revolving facility, which currently has CAD$1.2 billion of
borrowing availability, and for general corporate purposes. As
previously announced, HBC expects to exit its Lord & Taylor store at
this location, and is on track to wind down operations in early 2019,
with the process starting in Fall 2018.

About HBC

HBC is a diversified global retailer focused on driving the performance
of high quality stores and their omnichannel offerings and unlocking the
value of real estate holdings. Founded in 1670, HBC is the oldest
company in North America. HBC's portfolio today includes formats ranging
from luxury to premium department stores to off price fashion shopping
destinations, with more than 480 stores and approximately 65,000
employees around the world.

HBC's leading banners across North America and Europe include Hudson's
Bay, Lord & Taylor, Saks Fifth Avenue, Saks OFF 5TH, Galeria Kaufhof,
the largest department store group in Germany, and Belgium's only
department store group Galeria INNO.

HBC has significant investments in real estate joint ventures. It has
partnered with Simon Property Group Inc. in the HBS Global
Properties Joint Venture, which owns properties in the United
States and Germany. In Canada, it has partnered with RioCan Real Estate
Investment Trust in the RioCan-HBC Joint Venture.

FORWARD-LOOKING STATEMENTS

Certain statements made in this news release, including, but not limited
to, the expected timing of the closing of the Lord & Taylor Fifth Avenue
building and the application of the net proceeds therefrom, and other
statements that are not historical facts, are forward-looking. The sale
of the Lord & Taylor Fifth Avenue building is subject to a number of
risks factors, including the failure to obtain or satisfy, in a timely
manner or otherwise, conditions of closing necessary to complete the
sale of the Lord & Taylor Fifth Avenue building and risks inherent to
the Company's business and/or factors beyond its control and the failure
to close the sale of the Lord & Taylor Fifth Avenue building in a timely
manner, or at all, may have a material adverse effect on the Company.
For more information on the risks, uncertainties and assumptions that
could cause HBC's actual results to differ from current expectations,
please refer to the "Risk Factors" section of HBC's Annual Information
Form dated May 4, 2018, as well as HBC's other public filings, available
at www.sedar.com
and at www.hbc.com.

The forward-looking statements contained in this news release describe
HBC's expectations at the date of this news release and, accordingly,
are subject to change after such date. Except as may be required by
applicable Canadian securities laws, HBC does not undertake any
obligation to update or revise any forward-looking statements contained
in this news release, whether as a result of new information, future
events or otherwise. Readers are cautioned not to place undue reliance
on these forward-looking statements.

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