Zucker’s Death Throws The Bay’s Future Into Question
Posted April 14, 2008 12:00 pm.
This article is more than 5 years old.
The fate of Hudson’s Bay Co. is unclear following the death of owner Jerry Zucker Saturday, but the odds are high that the retailer will eventually be sold, observers predicted Sunday.
The retailer is now in the hands of the South Carolina billionaire’s wife, Anita Zucker, a retired teacher and philanthropist.
Zucker, who observers say has kept a close eye on her husband’s business life, replaces him as governor or chairperson of HBC. She’s the first woman to hold the position in the company’s 338-year history.
Rob Johnston, a Montreal native who orchestrated Mr. Zucker’s takeover of the company two years ago, is the new chief executive officer.
He became president last August and is also deputy governor. Anita Zucker said in a statement that the family is committed to “the continued success and growth” of the company with the help of the management team.
“I look forward to working closely with them,” she said in the statement.
Observers predict Zucker will maintain the status quo at HBC, at least in the short term, although she may consider selling it in the longer run.
Richard Talbot, a retail consultant with Talbot Consultants International in Markham, Ont. agrees HBC will likely be put on the auction block.
“My guess is that it probably will be put back into play,” said Talbot.
But Talbot was not sure HBC will be put up for sale any time soon. It is not a good time to unload a retail property because of the weakening economic climate, he said. And it is tougher to get financing for such a takeover.
While Jerry Zucker kept a low profile in Canada, his wife is even less familiar to industry insiders. Still, people who have worked with her in the couple’s hometown of Charleston, S.C., said she is an energetic and focused person.
“She is very involved in every aspect of the business,” said Mark Dubrouillet, floor manager of the high-end Tristan Restaurant, one of three local eateries that the Zuckers own. “She’s a decision maker. She makes a lot of decisions.”
Jerry Zucker, whose death from brain cancer came as a surprise to many HBC employees, acquired the storied company in 2006 for $1.1-billion after a bitter takeover battle. He set about to transform its Bay division into a more upscale department-store chain, emulating Macy’s in the U.S. He launched new private labels, empowered store managers to make local purchasing decisions and re-jigged technology in a bid to inventory to the shelves faster.
At HBC’s Zellers chain, he started the so-called Project Red which saw the stores take a page from U.S. discounter Target Corp. with wider aisles, expanded outlets and prices that match those of Wal-Mart Canada Corp., the leader in the discount sector.
Earlier this year, he sold the company’s small Designer Depot discount fashion unit. But HBC officials said it would hold on to its Home Outfitters chain, despite observers’ predictions that it would be the next to go.
Founder and CEO of the InterTech Group Inc., a global conglomerate that is considered one of the largest privately held businesses in the U.S., Zucker had very little previous experience in retailing.
But Sonshine, whose company was part of a group that looked at taking a run at HBC, said Zucker was a brilliant man who managed to improve profit margins at the retailer, even though sales stayed stagnant.
“He was quite prepared to not listen to many of the so-called retail experts,” Sonshine said. “He had no patience for them. If they’re so smart, how come they haven’t been able to fix anything? He was very sure of himself.”
