Saks Fifth Avenue is looking to spin off its dot-com business in a potential initial public offering within a year, according to a report.
The luxury retailer owned by Toronto-based Hudson’s Bay Co. left the Toronto Stock Exchange in March to become a privately held company, but management is now meeting with investors to plan an IPO for Saks.com, according to Women’s Wear Daily.
The move would split the 40 Saks Fifth Avenue stores from its $1 billion digital business, but an exclusive agreement would keep them tethered to each other, WWD reports. HBC also owns 106 Saks Off Fifth stores. Its executive chairman, Richard Baker, owns a majority stake in the company.
During the pandemic online shopping has become critically important for retailers as many shoppers avoid brick and mortar stores and sales at Saks.com have increased by “double digits.”
Saks Fifth Avenue chief executive, Marc Metrick, would be the likely candidate to run the public entity, according to the report.
HBC declined to comment.