Hudson’s Bay Considers Macy’s Buy

Department store chain looks to purchase the U.S. retailer, following its acquisition of Saks and Gilt in recent years.

Canadian department store Hudson’s Bay is exploring the acquisition of U.S. department store chain Macy’s, according to The Wall Street Journal.

Citing sources familiar with the matter, The Wall Street Journal also reports that talks are in preliminary stages and aren’t exclusively focused on an acquisition, but also include a series of ways that the two companies can cooperate, including on real estate. However, “other details of the talks are unclear and it’s far from guaranteed there will be any deal,” according to The Wall Street Journal.

Macy’s currently has more than 700 stores across the U.S., but is in the process of closing 68 locations this year and another 30 stores in the next several years to cut costs.

The retailer also slashed its earnings forecast last month after noting comparable sales fell 2.1 percent during the holiday period.

Additionally, an anonymous source also told The Wall Street Journal that Hudson’s Bay could finance a deal by raising equity and debt against its real estate or potentially do a deal with a partner.

“We do not comment on rumor or speculation,” says Tiffany Bourre, spokeswoman, Tiffany Bourre.

Hudson’s Bay has acquired a number of companies in recent years, including Saks and Gilt.