NEW YORK, Jan. 24, 2012 /PRNewswire/ -- Hudson's Bay Company, the Canadian retail conglomerate, completed its acquisition of its affiliate, Lord & Taylor Holdings, LLC, the U.S. department store company.
Following this announcement, Hudson's Bay Company will operate the two leading retail banners in North America, The Bay and Lord & Taylor. Prior to the transaction, Hudson's Bay Company and Lord & Taylor were side-by-side affiliate entities.
Richard Baker will remain Governor and CEO of the newly restructured company, with Donald Watros continuing as Chief Operating Officer. Bonnie Brooks, currently President & CEO of The Bay, will become President of the Hudson's Bay Company.
Richard Baker said, "We are fortunate to have both Don Watros and Bonnie Brooks round out the leadership team of the Hudson's Bay Company. Don's operational and financial expertise has been instrumental in contributing to both The Bay and Lord & Taylor's year-over-year profitability despite the poor economic environment around the globe."
"Bonnie's extraordinary leadership at The Bay and previous global retailing expertise from Lane Crawford are a natural fit to lead this new integrated organization as we move to our next phase of growth and evolution. The turnaround and speed of growth at The Bay under Bonnie's leadership is unprecedented in modern times," he added.
Lord & Taylor and The Bay will maintain their distinct identities and nameplates while leveraging the merchandising strengths of the organizations to improve and accelerate their continued growth.
Baker also noted, "We look forward to an even stronger 2012 with this new leadership structure in place and the strength of two dynamic teams coming together and leading the HBC into the future."
Brendan Hoffman President and CEO of Lord &Taylor will be leaving the company to pursue another opportunity.
Baker said, "I want to thank Brendan for his contribution to the success of Lord &Taylor over the past three years and wish him well on his new challenge."
As part of the transaction, Hudson's Bay invested $427 million in Lord & Taylor, which used the proceeds entirely to reduce corporate debt.
About Hudson's Bay Company
Hudson's Bay Company, founded in 1670, is North America's longest continually operating company. The company comprises The Bay, a major department store, Zellers, a mass merchandise format, Home Outfitters, a kitchen, bed and bath specialty store, and value-priced Fields stores. With more than 600 retail outlets and approximately 50,000 associates in Canada, Hudson's Bay Company banners provide Canadians with stylish, quality merchandise at great value and with a dedicated focus on exceeding customer expectations.
The Hudson's Bay Company's US banner operations include Lord & Taylor, an upscale specialty retailer with 46 stores across nine states. Two new stores are planned for Spring 2012. The company also operates 3 outlet stores, Lordandtaylor.com, and two Lord & Taylor Home stores.
SOURCE Hudson's Bay Company