BREAKING: SAKS APPOINTS NEW CEO FROM HARROD'S AND NOT BONNIE BROOKS

Image: Womens Wear Daily (wwd.com) [Image Article Link]

Despite speculation that former Hudson's Bay president Bonnie Brooks would become CEO of Saks Fifth Avenue, the job has been given to Marigay McKee, 'chief merchant' of Harrod's. She will begin her duties at Saks in mid-December of this year. 

Saks CEO Stephen Sadove and president/chief merchant Ronald Frasch will both leave Saks after the sale is completed later this fall. Sadove stands to gain almost $23 million for his exit, while Frasch will gain almost $10 million. 

Boards of directors for Saks and the Hudson's Bay Company have approved the Saks purchase by HBC. Saks shareholders still have to vote on the sale to HBC, and it's expected to pass. A 40-day "go shop" period recently expired, clearing the way for the deal's completion. 

We reported in July that HBC bought Saks Fifth Avenue for about $2.9 billion. This paves the way for Saks Fifth Avenue stores to open accross Canada. 

[Source: Drapers]


Further to the above, we were also provided this press release after we published the article above: 

HBC Announces Future President of Saks Fifth Avenue

Establishes Office of the Chairman
New organizational structure in place for growth

TORONTO--(BUSINESS WIRE)--Hudson’s Bay Company (TSX: HBC) (“HBC” or the “Company”) today announced the appointment of Marigay McKee as the future President of Saks Fifth Avenue. The appointment will take effect shortly after completion of the planned Saks acquisition, which is expected to close before the end of the calendar year, subject to approval by Saks shareholders, regulatory approvals and other customary closing conditions.

“I am delighted to join Hudson’s Bay Company to head up Saks Fifth Avenue and work with their dedicated team”

“Marigay McKee’s experience as an effective world-class leader in the international luxury retail space is well-aligned with our vision for the Saks Fifth Avenue brand,” said Richard Baker, Governor and CEO of Hudson’s Bay Company. “She has a proven track record of success at the highest level of luxury and I’m very excited for her to head up our Saks business at HBC.”

McKee joins Hudson’s Bay Company with an extensive resume in the luxury retail sector and over 20 years of management and merchandising experience. As Chief Merchant of Harrods, she has overseen the planning and implementation of the merchandising and creative strategies since 2011. She has served on the company’s Board of Directors since 2005, where she worked closely with the company’s shareholders and owners to set the strategic vision for the organization.

McKee joined Harrods in 1999 and was appointed General Merchandising Manager of Beauty in 2000. Over the next several years she added responsibilities for accessories, jewelry and womenswear. McKee was given responsibility for all beauty and fashion merchandising in 2007, where she doubled key businesses, and drove profit and growth strategies. She also oversaw brand and merchandising strategy, marketing and visual merchandising. McKee is a member of the British Fashion Council board, Chairman of the BFC/Vogue Fashion Fund Mentoring Committee, a luxury advisor to the Financial Times, and has done consultancy work in Russia with TSUM and Mercury Group.

“I am delighted to join Hudson’s Bay Company to head up Saks Fifth Avenue and work with their dedicated team,” said McKee. “Saks Fifth Avenue is one of the world’s preeminent luxury retailers with a rich history and tradition of exceptional customer service.” McKee added, "Saks presents a great opportunity as a world class brand with new frontiers for development. I'm excited for this unique challenge as we embark on this new chapter at the company."

New organizational structure in place for growth

In addition, HBC announced the creation of a new Office of the Chairman, consisting of Richard Baker, Governor and CEO, and Donald Watros, Chief Operating Officer. The senior executives of HBC’s retail businesses, as well as other key holding company executives and the heads of certain shared services units, will report to the Office of the Chairman. This new organizational structure is designed to advance the Company’s development as a growing, premier North American retailer and ensure a seamless merger process with Saks.

Mr. Baker added, “With the Office of the Chairman we are creating a robust leadership team that will focus on managing and growing HBC, along with our strong and expanding portfolio of brands. Our goals for this new structure are to maintain the unique identity of each retail brand, to build an effective and cost-efficient platform of shared services, and to position the Company for growth and expansion.”

Don Watros noted, “By creating a well-coordinated operating structure reporting to the Office of the Chairman, we can ensure that each business is managed in a consistent fashion aligned with HBC’s corporate goals. Furthermore, this structure will provide each brand with the resources and investment it needs to best serve its customers and realize its growth potential, maximizing the performance of the Company overall.” He added, “I’m pleased to welcome Marigay to HBC and am confident that she is well positioned to lead the Saks team, in keeping with our goals to operate and grow Saks as a separate business unit under the HBC umbrella.“

Additionally it has been announced that Marc Metrick, currently Executive Vice President of HBC, will become Chief Administrative Officer reporting to the Office of the Chairman. In his new role, Mr. Metrick’s principal responsibility will be integrating the Saks business into the HBC portfolio.

Jennifer de Winter, currently EVP, Director of Stores for Saks, Inc. will take on the role of EVP, Chief Merchandising Officer of Saks Fifth Avenue, where she will report to Marigay McKee.

“Our team is structured to ensure business as usual at Saks Fifth Avenue. We will continue to focus on customer service and fashion leadership, along with ensuring a seamless transition both internally and externally. Don and Marc were formerly executives at Saks Inc., and bring with them a total of nearly 25 years there. Combined with Jennifer’s 18-year history with the company, we have a strong bench of executives with a deep appreciation for Saks’ culture, traditions and strengths,” Baker noted.

The following key positions will report to the Office of the Chairman:

• Holding Company and Shared Services
• Chief Administrative Officer
• Chief Financial Officer
• Human Resources
• General Counsel
• President—Real Estate
• Executive Vice President—Store Planning, Construction & Design
• Executive Vice President—Shared Services Group
• Retail Business Units
• President—HBC Department Store Group (responsible for the Hudson’s Bay and Lord & Taylor banners)
• President—Saks Fifth Avenue (subject to approval of the merger transaction)
• Executive Vice President—Outlets
• Senior Vice President—Home Outfitters

Additionally, it has been announced that Steve Sadove, Chairman & CEO of Saks Incorporated, and Ron Frasch, President and Chief Merchant of Saks Fifth Avenue, will not continue with the company following the close of the transaction. Baker said, “I want to thank Steve and Ron for their contributions to the success of Saks Fifth Avenue and wish them well in their future endeavors.”

About Hudson's Bay Company

Hudson's Bay Company (HBC), founded in 1670, is North America's longest continually operated company. In Canada, HBC operates Hudson's Bay, Canada's largest department store with 90 locations, unsurpassed in its fashion, beauty, home and accessory designers and brands, as well as thebay.com. HBC also operates Home Outfitters, Canada's largest home specialty superstore with 69 locations across the country. In the United States, HBC operates Lord & Taylor, a department store with 48 full-line store locations throughout the northeastern United States and in two major cities in the Midwest, and lordandtaylor.com. With approximately 29,000 Associates in Canada and the U.S., Hudson's Bay Company banners provide stylish, quality merchandise at great value, with a dedicated focus on service excellence. Hudson's Bay Company trades on the Toronto Stock Exchange under the symbol "HBC".

About Saks Fifth Avenue

Saks Fifth Avenue, one of the world’s pre-eminent specialty retailers, is renowned for its superlative American and international designer collections, its expertly edited assortment of handbags, shoes, jewelry, cosmetics and gifts, and the first-rate fashion expertise and exemplary client service of its Associates. Today, Saks operates 41 full-line stores in 20 states, five international licensed stores, 69 Saks Fifth Avenue OFF 5TH stores and saks.com, the company’s online store.