The Hudson’s Bay Company department store chain and its real estate assets will become a standalone entity after the retailer completes its US$2.65-billion acquisition of Neiman Marcus.

Toronto-based Hudson’s Bay Company, also known as the Bay, falls under the ownership umbrella of HBC, which is headed by U.S. real estate investor Richard Baker. HBC has agreed to acquire the U.S.-based Neiman Marcus department store chain and include it in a new company, Saks Global.

Plans call for Saks Global to include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman. The retail chains will continue to operate under their respective brands.

After the deal closes, the Hudson’s Bay Company will be recapitalized as a standalone entity separate from Saks Global, “with significantly reduced leverage and enhanced liquidity,” HBC announced.

HBC will retain full ownership of the Bay and its C$2-billion real estate portfolio. The move, said HBC, will position the Canadian business well for future growth.

The Canadian business has struggled in recent years, cutting hundreds of jobs and falling behind on payments to some suppliers in fall 2023, the Globe and Mail reported.

The Hudson’s Bay Company is Canada’s oldest firm, dating back to the fur trade era in 1867.

Although HBC will continue to own the Bay in full, Amazon and Salesforce are investing in Saks Global.

HBC said it has secured a US$1.15-billion fully committed term loan financing from investment funds and accounts managed by affiliates of Apollo, and a US$2-billion fully committed revolving asset based loan facility.

The latter loan facility was provided through lead underwriter Bank of America, Citigroup, Morgan Stanley, Canada’s RBC Capital Markets and Wells Fargo.

Check out Connectcre.com for more details on HBC’s acquisition of Neiman Marcus.