Hudson’s Bay, parent company of retailers Saks Fifth Avenue and Lord & Taylor, is on the hunt for a new CEO. Jerry Storch suddenly announced he will step down from his role on Nov. 1, 2017. In the interim, Richard Baker, Governor and Executive Chairman of Hudson’s Bay, who previously served as the company’s CEO, will take over until a permanent replacement is found.
Storch, who joined Hudson’s Bay in 2015, will be returning to his advisory firm, Storch Advisors, following his departure.
The company has seen better years. Storch is the second executive to leave this year; Don Watros, President of Hudson’s Bay International, stepped down less than a month ago. In addition, the company’s transformation plan will result in 2,000 jobs cut, as announced in June 2017.
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Additionally, Hudson’s Bay recently announced that it would sell the iconic Lord & Taylor flagship store in New York City for $850 million, but would continue to operate a slimmed-down retail store within the building.
Hudson’s Bay investor Land & Buildings is impatient with the company, according to multiple reports, as it has been waiting on the company to cash in on its real estate. “Jerry Storch is only the most recent casualty at the company, joining several other senior executive departures,” said Land & Buildings Founder Jonathan Litt in a statement. “In reality, Executive Chairman Richard Baker, who will be taking on the role of interim CEO, continues to call the shots. This is even more problematic given how Baker has been stonewalling Land & Buildings and the investment community regarding a plan to unlock the value of the real estate embedded in the Company.”
Hudson’s Bay isn’t the only company that has experienced C-level changes. In September 2017 alone, retailers including Rite Aid, Kohl’s, Office Depot, and GNC have all dealt with high-level shakeups.
