Hudson’s Bay Cuts 825 Jobs
Toronto, Hudson’s Bay Co. (Hbc) eliminated about 825 management and administrative positions from across the company. “We have simplified our operations and we are harvesting the benefits of completing the integration of all remaining Hbc functions,” said George Heller, president and CEO. The company expects the move, and other non-personnel initiatives, to save $40 million to $45 million annually. Last week, it was revealed that Hudson’s Bay received an unsolicited offer from Maple Leaf Heritage Investments to purchase the outstanding shares in Hbc. Maple Leaf, led by U.S. financier Jerry Zucker, already Hudson’s Bay’s largest shareholder with a take of 18.8%.
Report: Linens ‘n Things Negotiations Heat Up
Clifton, N.J., Linens ‘n Things is reportedly in advanced talks to be acquired by Apollo Management, a New York City-based private equity group, for about $1.2 billion. The retailer, based in Clifton, N.J., put itself up for sale in September.
Poll Reveals Cautious Consumers
Costa Mesa, Calif., According to the latest Experian-Gallup Personal Credit Index (SM) survey, 32% of consumers expect to spend less this year, while just 12% expect to spend more and 56% expect to spend about the same.
“Consumers cite financial factors, especially the price of energy, but also general price increases and lower income as the major reasons why they will spend less,” said Ed Ojdana, group president of Experian Interactive. “About half of all consumers expect to spend $500 or less, while the other half expect to spend more than $500. About a third of consumers, 34%, expect to spend at least $1,000.”
In light of financial difficulties, the vast majority of consumers expect to limit their spending to the amount of money they have on hand. Only 12% say that their holiday spending will increase their credit-card debt.
About one in five households, 22%, will have extra money available this holiday season in the form of a holiday bonus from their employer. Most will use at least part of it to cover holiday expenses, while others will use some of it to help pay off current debt or make a special purchase. About half will save or invest at least part of the bonus.