When you wildly expand a company, taking on enormous debt and perhaps not being as judicious as you might be in your purchasing decision, it stands to reason that it’s not going to work. That’s the situation Hudson’s Bay Co. finds itself it as it continues to unload, sell-off or just plain shutdown pieces of its conglomeration that are doing the trick. The latest victims: its Home Outfitters unit in Canada and 20 Saks Off Fifth stores.
As with many outsiders that come into the retail business, the sad truth is that the business just doesn’t throw off enough cash to service all that debt. Stupid decisions? Stupid due diligence? Stupid arrogance? Take your pick.
Here’s my take on Forbes.com: https://www.forbes.com/sites/warrenshoulberg/2019/02/22/hbc-closing-home-outfitters-20-saks-off-fifth-stores-as-its-teardown-continues/#2d91da1666c0