HBC, Signa in talks over potential Kaufhof joint venture
Hudson’s Bay Company is reportedly in talks with leading Austria retail group Signa Holding over a possible joint venture between the two companies in regard to HBC’s German retail chain Kaufhof.
The speculation, first reported by Reuters, citing people familiar with the matter, comes after HBC rejected an outright takeover offer for Kaufhof from Signa earlier this year, valued at USD$3.7bn.
The joint venture being discussed will allegedly see Signa’s operating company Karstadt to acquire half of the Kaufhof property company and 51% of Kaufhof’s own operating company.
A deal would allow HBC to work with Signa to improve its own position as the brick and mortar firm is looking to operate more effectively within the ecommerce market against the likes of Amazon, moving more readily away from its traditional department stores.
The company is currently working with consulting firm AlixPartners LLP in the way of pursuing its reformation.
Further, HBC earlier this month appointed Stephen Gold as its new Chief Technology and Digital Operations Officer to oversee its technology transformation strategy and lead the retailer’s newly formed digital team.