Hudson’s Bay Company: Restructuring in a Retail Decline

Name: Hudson’s Bay Company: Restructuring in a Retail Decline (English version)
SKU: 9B18M075

Kelly Whitehead; Steven Campbell

Product #:9B18M075

Supplier:Ivey

Discipline:General Management

Setting:Canada, 2017

Details:Case (PDF) • 9 pages • 2018-04-27

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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?

Learning Objectives

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.

Hudson’s Bay Company: Restructuring in a Retail Decline

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Learning Objectives