(Bloomberg)—Hudson’s Bay Co., the owner of Saks Fifth Avenue, said it will close as many as 10 Lord & Taylor stores — including the flagship Manhattan location — in an attempt to revive its struggling units.
The closures will occur through 2019, the company said Tuesday. Hudson’s Bay had originally planned to keep a Lord & Taylor presence in the Italian Renaissance building on Fifth Avenue, which it agreed to sell for $850 million in October. The store opened there in 1914.
“An increased focus on driving Lord & Taylor’s digital business, combined with new leadership and an optimized store footprint, is expected to reduce costs and improve the overall performance of this business,” Hudson’s Bay said in a statement Tuesday.
The Canadian department-store company, which agreed to sell flash-sale website Gilt on Monday, reported a normalized loss of C$1.22 a share that was wider than analysts’ estimates of 76 cents. Comparable store sales fell 0.7 percent in the quarter ended May 5. The results sent the shares plunging as much as 13 percent in Toronto, the most since December. The stock was down 3.6 percent to C$10.24 at 10:58 a.m.