Hudson’s Bay Co. is exploring a spin-off of as a public company, separating the online business from Saks Fifth Avenue’s brick & mortar operation, according to a report from WWD.

The two companies would have an exclusive partnership agreement to continue to collaborate, the report said.

“Hudson’s Bay is meeting with investors now to do a private placement in, putting it in a position to do an IPO in the next 12 months,” a source told WWD.

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