Luxury department store operator Saks Fifth Avenue, owned by Canada’s Hudson’s Bay Co., is expanding into bankrupt fashion chain Barneys’ Beverly Hills shop, Reuters reported. The move comes ahead of a shareholder vote later this month to approve Hudson’s Bay Executive Chairman Richard Baker’s C$2 billion ($1.51 billion) bid to take the retailer private. As a private company, Hudson’s Bay will be able to invest in its business without facing scrutiny from public shareholders. The company’s shares fell by almost one-half in the year before Baker announced his bid, but have since risen more than 40 percent. Barneys filed for bankruptcy last year due in part to rent hikes. Saks will use some form of the Barneys brand at the Beverly Hills store. The expansion of Saks into the Barneys’ location will give the upscale department store three stores on Wilshire Boulevard: its men store, a department store and the third spot in Barneys. It is not yet clear if Hudson’s Bay will keep all three locations. Hudson’s Bay currently operates 41 Saks Fifth Avenue stores and 114 Saks Off 5th discount locations.
