2 Min Read
July 28 (Reuters) - Canadian retailer Hudson's Bay Co (HBC) is close to buying U.S. luxury department store Saks Inc, 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 and Neiman Marcus Group Inc, 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 to advise on the sale. The investment bank was not immediately available for comment.