The purchase of Saks Fifth Avenue will create a big change at the top.
The company’s chairman and CEO, Stephen I. Sadove, as well as Ronald L. Frasch, its president and chief merchant, have both announced they will resign once the retailer’s purchase by Hudson’s Bay Co. is complete.
The company offered no word on their replacements. The $2.9 billion transaction is expected to close at the end of the year.
HBC also owns two other noted retailers: Lord & Taylor and Canada’s Hudson’s Bay.
“Saks has a great team, and working together, we have all accomplished so much over the last several years. We have developed and executed focused merchandising, marketing and service strategies. We survived the recession and emerged a stronger, more disciplined organization,” Sadove and Frasch commented jointly in a statement listing the company’s accomplisments.
“We have continued to modernize the Saks brand and elevate and differentiate our merchandise assortments. Our marketing efforts have become even more strategic and targeted, and our brand and image marketing is among the best in the industry. We have elevated our service levels and demonstrated our commitment to giving and to our communities through our very special charity affiliations. We have strengthened our balance sheet and improved our real estate. We have built a powerful saks.com business and transformed Saks OFF 5TH into an aggressive growth story. And, through key technology enhancements, innovative thinking and collaboration, our evolution to an omni-channel retailer has been a game changer,” the pair said.