Saks said its CEO and chief merchant will be leaving the retailer after the deal to sell itself to Hudson's Bay is complete, the Wall Street Journal reported on Monday (Sept. 16).
The resignations of Chairman and CEO Stephen I. Sadove and President and chief marketer Ronald L. Frasch will become effective after the $2.8 billion sale has closed, which is expected by the end of the year. The New York Post reported on Sunday (Sept. 15) that Sadove and Frasch will walk away with golden parachutes of $26 million and $9 million, respectively, for leaving the chain.
Leading contenders for the job of Saks president reportedly include Marigay McKee, chief merchant for Harrods in London; Jim Gold, president of retail at Neiman Marcus; Tony Spring, president of Bloomingdale's (NYSE:M); and Brendan Hoffman, CEO of The Bon-Ton Stores (NASDAQ:BONT), the Post reported, citing unnamed sources reportedly close to the search process.
While Sadove and Frasch won praise for improving Saks' business and bringing top European labels to the retailer, Hudson's Bay chairman Richard Baker reportedly believes the chain needs a shakeup after the acquisition. The sale will make Saks and Lord & Taylor stablemates, and while Baker has said he intends to keep both upscale fashion chains operating, they'll need some differentiation in cities that have stores under both banners, as well as online.
Baker has also said he plans to open Saks stores in Canada—up to seven full-line Saks stores and 25 Off-5th discount stores—some of which could be located inside Hudson's Bay department stores, which will make tighter coordination among the three banners even more crucial.
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