Hudson’s Bay announces credit card deal with GE

By Staff -- Home Textiles Today, 3/8/2006 12:27:00 PM

Toronto – Hudson ’s Bay Company will sell its private label credit card business and related financial services assets to GE Money (a Canadian unit of General Electric) for $370 million; GE Money will operate the credit programs in a 10-year alliance that will provide recurring revenue to the retailer.

The Hudson ’s Bay private label credit card program boasts some 3.1 million cardholders.

Hudson ’s Bay president and ceo George Heller said the company “has secured an upfront cash payment that represents a premium over the book value of this asset, in addition to significant on-going annual cash payments. We have also established the opportunity to add an impressive suite of financial products and services to ensure incremental benefits and value to existing and future HBC customers.”