Hudson’s Bay Co., parent of Lord & Taylor and The Bay in Canada, has postponed plans for an IPO.
This story first appeared in the October 13, 2011 issue of WWD. Subscribe Today.
The company had planned to offer to the public 20 percent of the firm’s stock at the end of this month and be listed on the Toronto Stock Exchange. Executives began putting the plan in place as early as May, when it initiated discussions with Canadian bankers. But an IPO would have required a road show 30 days prior to the listing that would last about one week. That road show never materialized, according to sources.
The global equity markets, which were higher in July, have become more volatile. That volatility has decreased the appetite for new issues as investors would rather wait until the markets stabilize before making any decision on what to invest in.
Moreover, an IPO is typically the option chosen for firms to access the capital markets. In the case of Hudson’s Bay, the company can afford to wait until the right conditions present themselves since it doesn’t need the money, one source said.
Hudson’s Bay Co., founded in 1670 as a fur-trading firm, was acquired in 2008 for $1.1 billion by NRDC Equity Partners. It was later renamed Hudson’s Bay Trading Co.
Richard Baker, chairman of Hudson’s Bay Co., could not be reached for comment.