Lord and Taylor to expand in Canada
July 18, 2008
Toronto—The private equity firm that owns both
Lord and Taylor and Fortunoff department stores has acquired a Canadian retail company, setting the stage to expand its operations in that market.
According to
SCT Newswire,
NRDC Equity Partners paid a total of about $1.1 billion to obtain total control over Canadian retail conglomerate Hudson's Bay.
NRDC had owned a 20 percent stake in the Toronto-based company for years.
Hudson's Bay operates 94 The Bay department stores, 280 Zellers discount stores, 61 Home Outfitters stores and 161 Fields stores.
SCT Newswire reports that NRDC plans to use existing Hudson's Bay real estate to secure store sites for Lord and Taylor in Canada. The company also plans to open small Fortunoff and Lord and Taylor stores inside some existing The Bay department stores.
According to
SCT Newswire, Richard Baker, president and CEO of NRDC and chairman of Lord and Taylor (who will also assume the title of CEO for Hudson's Bay), said some of The Bay's flagship stores, like the 900,000-square-foot Toronto store and the 650,000-square-foot store in Vancouver, B.C., can accommodate a 200,000-square-foot Lord and Taylor store.
"We will have an unprecedented opportunity to re-create the retail landscape in North America," he said. "The combined companies own a portfolio of trophy real estate assets that create a spectacular opportunity for development around the existing retail operation."
Baker said up to 15 Lord and Taylor locations could open in Canada. NRDC aims to position Lord and Taylor as the Nordstrom of Canada, a mid-level department store between the country's high-end
Holt Renfrew chain and The Bay chain.
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