Hudson’s Bay In Talks With Signa On European Joint Venture

Hudson’s Bay Co. has refuted recent reports it had signed a binding agreement to sell or combine its European business or properties but acknowledged that it is in discussions with Signa Holding GmbH exploring a potential joint venture and has signed a non-binding letter of intent with that firm.

Although it does not generally comment publicly on market speculation or rumors, the company stated, it decided that prudence suggested it advise stakeholders that it is in discussions with Signa given media reports about a potential deal between the parties.

HBC pointed out that any potential transaction is subject to further review and analysis, approval of the company’s board of directors and others conditions, including due diligence and third party consents. Discussions may not lead to a transaction, the company cautioned, adding that it doesn’t anticipate issuing any further public statement regarding rumors or speculation in the marketplace about a deal unless required by applicable laws.

HBC operates retail banners across North America and Europe include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks Off 5TH, Galeria Kaufhof and Galeria Inno. HBC has significant investments in real estate joint ventures, the company indicated, including one with Simon Property Group that owns properties in the United States and Germany. In Canada, HBC has partnered with RioCan.

Signa operates 82 Karstadt department stores in Germany.