Hudson’s Bay Company announced Thursday that it is considering strategic alternatives for the company’s credit card business, including the potential sale of the business.

Commenting on the announcement, George Heller, president and CEO of Hbc said: “The market conditions are such that we believe there is the potential for the company to realize immediate value for our credit business, while maintaining a significant ongoing stream of income from the partnership we would establish with the ultimate buyer. We will seek a partner that will potentially assume ownership of the business and, add value for our customers through supplementary and enhanced financial services, while Hbc management focuses on our merchandising operations and growth initiatives. Given the high quality of Hbc’s credit card business and current market demand for these increasingly scarce assets, we have determined that it is the right time to consider alternatives for this business.”

In August, Sears Canada announced the $2.2 billion sale of its credit card division to JPMorgan Chase & Co.

Hbc’s Financial Services division manages one of the largest Canadian private label retail card portfolios with $1.2 billion in card receivables at year-end 2004, representing approximately 3.1 million active accounts (approximately 1.7 million Bay and 1.4 million Zellers accounts).

The business represents the country’s second largest remaining in-house proprietary card portfolio generating more than $162 million in normalized earnings before interest and tax in 2004.

Hbc has retained Goldman Sachs & Co. and BMO Nesbitt Burns Inc. as financial advisors in this process.

Hbc said it expects to conclude its review of options for its credit card business and take any related actions that arise from this review by the first quarter of 2006.