TORONTO, Jan. 13 /CNW/ - Hudson's Bay Company announced today that its
subsidiary, Zellers Inc., has reached an agreement with Target
Corporation for C$1.825 billion for the sale of up to 220 leasehold
interests that are currently operated as Zellers stores.
As part of the transaction, Zellers Inc. will sublease the properties
back from Target Corporation upon closing and continue to operate them
as Zellers stores for a period of time. Target Corporation expects to
open 100 to 150 Target stores throughout Canada in 2013 and 2014.
Additionally, it is anticipated that a select number of Zellers
locations will be assigned to other retail enterprises. Zellers Inc.
will continue to operate a portfolio of certain Zellers stores in
specific communities across the country.
According to Richard Baker, Governor, Hudson's Bay Company, "This
transaction provides attractive long term value and will allow us to
invest substantial capital into our department store and specialty
store businesses to continue to drive growth."
The sale of these leasehold interests is estimated to create over 20,000
net new jobs in Canada and has the potential to generate over $1.5
billion in Canadian economic activity through the renovation of the
Zellers locations. The entry of Target Corporation into the Canadian
market will provide a broader retail product offering to Canadian
About Hudson's Bay Company
Founded in 1670 and based in Toronto, The Hudson's Bay Company is a
conglomerate that operates the Bay, a major department store, Zellers,
a mass merchandise format, Home Outfitters, a kitchen, bed and bath
specialty store, and value-priced Fields stores.
SOURCE Hudson's Bay Company
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