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Hudson’s Bay CEO quits

Hudson's Bay CEO quits

Hudson’s Bay Co. chief executive Jerry Storch is leaving the company, after serving in the Canadian retail company for just under three years.

Effective 1 November 2017, Storch will return to his advisory firm, Storch Advisors, after being the second-top ranking executive in HBC, under Richard Baker, the group’s executive chairman and governor.

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Hudson’s Bay CEO quits
Source : CNBC

With Storch previously reporting to Baker, it is believed that Baker felt it was time for a change at the top and had been thinking about it for a while.

“The board and I are grateful for Jerry’s contributions over the past three years, including enhancing our all-channel strategies, recruiting key talent, leading our cost-cutting efforts, and working to address the challenges for our banners in the fast-evolving retail environment,” said Baker.

“We thank Jerry and wish him the best,” he continued. Baker, who had previously served as CEO, will reassume the duties post-Storch on an interim basis, in addition to his current role, on an interim basis. The company’s executive leadership team will support him.

An executive search firm to recruit a new CEC has been launched by HBC. WWD reported that Jim Gold, president and chief merchandising officer of the Neiman Marcus Group; Tony Spring, chief executive officer of Bloomingdale’s; and Brendan Hoffman, ceo of Vince, who previously worked for Baker as president of the Lord & Taylor division of HBC, could be among those contacted during the search process.

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However, internal executives could also be considered or Baker could decide to pick someone from out of the traditional retail box, as Macy’s did in recently hiring Hal Lawton, a former senior vice president of eBay North America, as president.

HBC operates Saks Fifth Avenue, Lord & Taylor, Hudson’s Bay, Kaufhof, Saks Off 5th and Gilt. This year alone, the company has been suffering, reporting a net loss of 201 million Canadian dollars, or $162.3 million, for the second quarter for a total sales gain of 1.2%. Last June, the company announced 2,000 job cuts to save 350 million Canadian dollars annually.