Saks Fifth Avenue will open its first Canadian store in downtown Toronto. Hudson's Bay announced plans to open a 150,000 square-foot, multi-level Saks store to be co-located with the current Hudson's Bay store there. The company will also open a second Saks store in Toronto's Sherway Gardens.
Hudson's Bay also said it is planning to sell its downtown Toronto flagship retail complex and the Simpson's Tower for $650 million. Proceeds of the transaction will be used to reduce the retailer's debt and invest in future initiatives. The flagship will be sold to the Cadillac Fairview Corp., a North American investor, owner and manager of commercial real estate. HBC will lease the complex from Cadillac Fairview for 25 years, with an option for renewal for a term of slightly less than 50 years.
Plans for the Canadian expansion were first acknowledged in September. Vice-Chairwoman Bonnie Brooks said the first priority for Saks following its acquisition by Hudson's Bay would be to open seven Saks stores in Canada, followed by global expansion. Hudson's Bay finalized the $2.4 million transaction in early November.
-See this Hudson's Bay press release
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