On November 1st, CEO of the Hudson’s Bay Company Gerald Storch will formerly resign with Richard Baker, Govenor and Executive Chairman of HBC, to temporarily take his place. Storch is returning to his position at Storch Advisors, an advisory firm that he managed before he became a part of HBC.
Storch’s resignation has left some uncertainties about the future direction of the company, especially in relation to department stores and the German department chain Kaufhof. However, Baker insists that department stores will still be a part of HBC’s future.
“I still firmly believe in the future of department stores,” explains Baker, “and of course we are sticking with our investment and growth strategy in Europe.” Although Baker is on board, the company has been facing the pressure of shareholder Jonathan Litt who wants to focus on raising HBC’s stock performance.
“We are evaluating a number of proposals on which we believe the voices of shareholders should be heard—including the removal of directors from the Board—and will announce the full slate of proposals and next steps in the Special Meeting processes shortly,” announced Litt.
While the company negotiates the strategy for the future, HBC’s stock is up 3.66%.
