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GE Money taking over HBC's credit card division

Deal may generate C$370 million in cash net

By Furniture Today Staff -- Furniture Today, February 9, 2006

TORONTO — Hudson’s Bay Co. has sold its credit card division to GE Money, the Canadian consumer lending unit of the New York-based General Electric Co.

The purchase includes a 10-year alliance during which GE Money will issue and operate the HBC private-label credit card and related financial services — including credit marketing, analytic support, credit servicing and customer care.

HBC anticipates the deal will generate approximately C$370 million in cash net of securitized receivables and related costs and taxes.

HBC has about 3.1 million cardholders. The cards can be used in all of HBC’s stores, including The Bay, Zellers, Home Outfitters and Designer Depot. Under the new arrangement, these customers will continue have access to HBC’s reward program and other cardholder benefits.

Canada’s other major department store retailer — Sears Canada — sold its credit card division in November to J.P. Morgan Chase & Co. for C$2.3 billion.

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Hudson's sells card to GE unit

Mar 19, 2006

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