Macy's may be bought by owner of Saks and Lord & Taylor
11:26 AM, Feb 3, 2017
12:44 PM, Feb 3, 2017
NEW YORK (CNNMoney) -- The latest Miracle on 34th Street for Macy's could wind up being a sale of the company itself.
Macy's stock soared 10% Friday after the Wall Street Journal reported that Hudson's Bay, the Toronto and New York-based parent company of Lord & Taylor and Saks Fifth Avenue, might be interested in buying the iconic retailer.
A source familiar with the matter confirmed to CNNMoney that an offer has been made but that discussions are still in preliminary stages.
Spokespersons from Macy's and Hudson's Bay said they do not comment on rumors and speculation.
But questions about the future of Macy's have been swirling for some time, and they have intensified in recent weeks.
The New York Post reported Thursday that long-time CEO Terry Lundgren, who will be stepping down later this year, might look to sell the company before his term as CEO is up.
Last month, Macy's announced plans to shut down 68 stores and cut more than 10,000 jobs following disappointing sales during the holidays.
Macy's and other traditional department stores like Kohl's, Nordstrom, JCPenney and Sears have all found it difficult to compete with online retail giant Amazon, mass merchandisers like Walmart and Target and upstart fashion chains H&M and Zara.
If Macy's does wind up merging with Hudson's Bay, it would also reunite Macy's and Lord & Taylor under one corporate roof.
The two were briefly part of the same company after Macy's parent, then known as Federated, bought Lord & Taylor owner May Department Stores in 2005.
Federated sold Lord & Taylor in 2006 to NRDC, a private equity group. NRDC then bought Hudson's Bay in 2008.