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Saks will continue to run as a separate company under Hudson’s Bay and will have its own merchandising, marketing and store operations employees. Key management personnel are expected to remain with the company. But it wasn’t clear whether Sadove would be staying on.
In an email statement to The Associated Press, Saks spokeswoman Julia Bentley said "specific decisions about management and the organizational structure have not been made at this time." Sadove wasn’t available for an interview.
Saks will have a 40-day period in which to seek out alternative third-party bids.
The buyout, which was approved by both companies’ boards, is targeted to close before year’s end. It still needs approval from Saks’ shareholders.
Hudson’s Bay said that it will look at strategic options for the combined property portfolio, which could include establishing a real estate investment trust.
Hudson’s Bay said it aims to save $100 million in operating costs in the first three years by combining distribution centers and other back-office facilities of Hudson’s Bay and Saks Fifth Avenue.
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