Lord & Taylor parent mulls possible sale amid poor results
The parent company of Lord & Taylor on Monday said it is considering a possible sale or merger of the embattled brand as it struggles with plummeting sales and declining customer traffic.
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.
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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.