Canadian business group and retailer Hudson's Bay Company is buying out US-based luxury department store chain Neiman Marcus, according to The Wall Street Journal.

After several months of negotiations, the $2.65 billion USD (or $3.61 billion CAD) acquisition has reportedly been approved.

The WSJ says the new brand will be called Saks Global (Hudson's Bay Co. acquired Saks Fifth Avenue in 1998). Marc Metrick, CEO of Saks, is anticipated to take on the role of Saks Global's CEO.

E-commerce giant Amazon and software company Salesforce — both currently doing business with Saks — will reportedly have minority stakes in the new company and handle logistics, artificial intelligence, and other tech.

As of Thursday morning, neither Neiman Marcus nor the Hudson's Bay Company have publicly announced the acquisition, but a statement is expected soon.

A rocky recent past

In March 2022, Hudson's Bay closed its massive and historical Toronto store. The company laid off over 600 employees a year before shuttering, citing COVID-19 lockdown pressures.

In January last year, the company axed 2 per cent of its corporate employees, followed by multiple store closures across Canada.

In an earlier email, Hudson's Bay Deputy Vice-President Tiffany Bourre confirmed that the step was taken due to significant external pressures on Canada's retail sector.

"[The company] is realigning its strategic priorities and increasing efficiencies within its operations," she said.

"While these decisions are not easy, we are committed to treating everyone with fairness and respect," Bourre added in her response at the time.

Just months later, another round of layoffs followed, and 250 employees were let go. Bourre said the retail giant had "worked hard to minimize the impacts" on its associates, expecting economic pressures to ease.

"However, they have persisted longer than we had hoped, which has made these changes necessary," said Bourre.

Hudson's Bay Co. has yet to respond to a request for comment.