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Hudson’s Bay C.E.O. to Step Down Before Holiday Shopping Season
The chief executive of the Hudson’s Bay Company, the owner of Saks Fifth Avenue and Lord & Taylor, is departing ahead of the crucial holiday shopping season, as the retail industry faces increasing turmoil.
Gerald L. Storch, who has run Hudson’s Bay since January 2015, will step down from his post on Nov. 1, the company announced late Friday. The retailer’s executive chairman, Richard Baker, will assume the duties of chief executive, a position he has held in the past at Hudson’s Bay.
The company’s shares, which are traded on the Toronto Stock Exchange, closed on Friday afternoon at 11.96 Canadian dollars, or $9.47, up 0.9 percent.
Based in Toronto, Hudson’s Bay has faced increasing pressure from shareholders to find alternative ways to increase profits, such as selling some its most valuable real estate assets, including its flagship Saks store in New York.
Like other department store chains, Hudson’s Bay has been struggling to bolster sales as shoppers spend more money online and less time in stores.
Hudson’s Bay has been closing stores and laying off workers in an effort to cut costs and expand its digital business.
The company specializes in both luxury and inexpensive fashion brands, with more than 480 stores and 66,000 employees around the world.
Efforts to take traditional retailers private are becoming more challenging. This week, the family that controls the high-end department store Nordstrom shelved plans to go private, citing “the difficulty of obtaining debt financing in the current retail environment.”
A bankruptcy filing last month by Toys “R” Us, the world’s largest toy retailer, rattled lenders about the increasing risks in the retail industry.
Hudson’s Bay said it was hiring an executive search firm to look for a permanent replacement for Mr. Storch, who is returning to his advisory firm, Storch Advisors. The company said it was concentrating on the holiday shopping season, which could be a turning point for many struggling retailers.
“Right now, our entire team in North America and Europe is focused on delivering a strong holiday season and best serving our customers,” Mr. Baker said in a statement.
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