Hudson's Bay Co. appoints new ceo, gets acquired by NRDC

TORONTO On July 17, Richard Baker, governor of Hudson's Bay Co., announced that the organization would appoint Jeffrey Sherman as ceo. Sherman was president and coo of the Polo Ralph Lauren Retail Group.

A day earlier, the NRDC Equity Partners and True North Retail Investments, an affiliate of The InterTech Group, and the owner of Hudson's Bay, announced  the completion of NRDC's purchase of HBC. NRDC already owns Lord & Taylor, Fortunoff and Creative Design Studios, and will consolidate those properties with HBC under a holding company called the Hudson's Bay Trading Company.

Combined retail sales of the companies will be $8 billion. Baker will serve as ceo of the Hudson's Bay Trading Company. Among the consequences of the deal will be the introduction of the Lord & Taylor banner into Canada--10 to 15 units are initially planned and will fill a gap between HBC's The Bay and Holt Renfrew--and an increasing focus on the department store business, specifically, but also a general effort to move the overall HBC enterprise, including discount store banner Zellers, upmarket.

"By acquiring Hudson's Bay Co. along with previous acquisitions Lord & Taylor and Fortunoff, we will have an unprecedented opportunity to recreate the retail landscape in North America," said Baker. "Enormous potential exists by upgrading the offerings at both The Bay and Zellers and by bringing Lord & Taylor, Fortunoff & CDS into the mix," he added.

NRDC Equity Partners will invest $500 million in new equity into the newly-formed HBCT entity. NRDC has been an HBC minority owner with the Zucker Family, primary owner of True North. Baker has been an HBC board member since 2006.