Canada's Hudson's Bay close to Saks deal: media report

Sun Jul 28, 2013 9:50pm EDT
 

(Reuters) - Canadian retailer Hudson's Bay Co (HBC) (HBC.TO: Quote) is close to buying U.S. luxury department store Saks Inc SKS.N, according to a media report.

The New York Post reported on Sunday that the deal could be announced as early as Monday, citing a source briefed on the negotiations.

A Saks spokeswoman said the company did not comment on market speculation. HBC was not immediately available for comment.

HBC, which owns Canada's The Bay chain, also owns Lord & Taylor, a higher end chain concentrated in the U.S. Northeast and Midwest whose sales have been uneven since it went public.

Buying Saks would give HBC a luxury chain, but one which has struggled to keep pace with rivals Nordstrom Inc JWN.N and Neiman Marcus Group Inc NMRCUS.UL, which each get a much bigger proportion of sales online than Saks.

Saks' sales are only now returning to pre-recession levels. The company's flagship store on Manhattan's Fifth Avenue generates about $700 million a year and is worth about $1 billion by some estimates.

According to the newspaper, Saks has appointed Goldman Sachs & Co GSGSC.UL to advise on the sale. The investment bank was not immediately available for comment.

(Reporting By Nicola Leske and Phil Wahba; Editing by Stephen Coates)