Hudson's Bay Co Expects $20 Million Q3 Charge After Realignment

Hudson's Bay Co. , the Canadian retail group that includes Lord & Taylor and Saks Fifth Avenue, announced a realignment of its North American operations it says will result in a $20 million charge for the third quarter of fiscal 2015. The realignment includes a consolidation of business functions and technology enhancements that will be led by new CIO Janet Schalk and new digital executive vice president Dion Rooney. Hudson's Bay Company said these changes will generate $75 million in "cost savings and synergies" during fiscal 2016. The realignment will also result in 265 job cuts in North America. Hudson's Bay acquired Saks Inc. in 2013 and had since hired 2,000 associates to support new stores and digital expansion. The company also plans to open seven Saks Fifth Avenue stores and 25 Off 5th locations in 2016. The company's shares are down nearly 27% over the last three months.