The Canadian retail chain Hudson's Bay has ignored a takeover bid of approximately 2 billion Canadian dollars (1.4 billion euros) from investment company Catalyst Capital Group, the company said Tuesday. The Dutch branch of the retail chain has been in financial trouble for a long time and requested a deferment of payment last week.
The Catalyst offer was rejected by Hudson's Bay because it is no better than an earlier offer from a consortium led by Richard Baker, the chairman of Hudson's Bay. The Baker group made an offer of 10.30 Canadian dollars per share. That is more than 7 percent lower than the offer from Catalyst.
The consortium wants to take Hudson's Bay off the stock market to put things right behind the scenes. The retail chain saw the revenue from physical stores declining in recent years due to the growing popularity of online shopping.
That consumers have been unable to find Hudson's Bay less in recent years is also apparent in the Netherlands. In the summer it was announced that the retail chain in the Netherlands would close its doors at the end of December. Due to financial problems, the store chain applied for a deferment of payment last week, usually in the early stages of bankruptcy.
The company spokesperson said on Tuesday that there is no news about a possible bankruptcy of Hudson's Bay. A bankruptcy of the company could lead to the branches having to close before the end of December.