Hudson's Bay fumbles takeover deal for Macy's

London - Canadian department store group Hudson's Bay Co., parent company of Lord & Taylor and Saks Fifth Avenue, is said to have fumbled its bid to take over struggling US retailer Macy's.

The company has yet to come to an agreement with Macy's and discussion between the parties are said to have come to halt, just one month after HBC approached the US department store group. Sources at Reuters claim that Macy's is concerned that HBC may not able to raise the necessary financing for its bid, as the Canadian company's existing equity partners have been hesitant to back the group's bid for Macy's.

However, sources at WWD claim that it is "not a question of financing. HBC is not having financing problems." Rather, the two companies are said to have been unable to reach an agreement concerning price, as Macy's is said to be asking for more than Hudson's Bay is willing to pay. In addition, other issues concerning management and which senior executives would remain on board are also said to have hindered the finalisation of any deal.

Sources at both WWD and Reuters add that Hudson's Bay has not given up on Macy's just yet, but warn it may pursue another retail acquisition in the near future.

Photo: Saks Fifth Avenue, Facebook