Hudson’s Bay Company: Restructuring in a Retail Decline (Simplified Chinese Version)
(5 pages of text)
Case (Pub Mat)
In late 2017, Hudson’s Bay Company (HBC), Canada’s oldest retail company, was facing considerable pressure from activist investor Land & Buildings Investment Management (LBIM) after recording a CA$201 million loss in the second quarter of 2017. Immediately after posting the loss, HBC unveiled its Transformation Plan, which involved a significant restructuring of the company. However, continued clashes with LBIM revealed the plan’s inability to alleviate shareholders’ concerns. LBIM urged the company to tap into the value of its real estate holdings, which were undervalued relative to the current market capitalization. In the face of these concerns, HBC’s chief executive officer announced that he would be stepping down at the beginning of November 2017. How should HBC proceed?
This case is intended for undergraduate and graduate courses on introductory strategic management and finance. After working through the case and assignment questions, students will be able to do the following:
- Analyze Hudson Bay Company’s internal position through the resource-based view of the firm.
- Analyze the company's external position through Porter’s Five Forces.
- Discuss leveraged buyouts.
Canada, Large, 2017
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