Hudson's Bay Co.  (HBC)  is feeling the heat.

The Canadian retailer and owner of Saks Fifth Avenue buckled to the pressure of activist investor Jonathan Litt and will be reviewing privatization options and potential sales of real estate.

Litt, through his hedge fund Land and Buildings, threatened in June a proxy fight if management didn't consider ways to raise the value of Hudson's Bay's plummeting shares.

Hudson's Bay's executive chairman, Richard Baker, already has tapped an investment bank to defend itself against Litt's campaign and will hire another financial adviser for the review, Reuters reported on Friday, Aug. 25, citing unnamed sources. Hudson's Bay declined to comment.

Immediately following the news break, Hudson's Bay shares jumped 14%. The retailer has more than $10 billion in real estate assets -- holdings that make Hudson's a "real estate company, full stop," Litt wrote in a letter to its board in June.

More of What's Trending on TheStreet:

More from Corporate Governance

Pfizer Confirms to Cut Workforce by 2%

Pfizer Confirms to Cut Workforce by 2%

Time for Zuckerberg to Go as Facebook CEO?

Time for Zuckerberg to Go as Facebook CEO?

Constellation Brands CEO Stepping Down Just as Canada Legalizes Cannabis

Constellation Brands CEO Stepping Down Just as Canada Legalizes Cannabis

What Is an EBITDA Margin? Examples and How to Calculate

What Is an EBITDA Margin? Examples and How to Calculate

J.C. Penney Slides as Sears' Demise Casts Pall on Shares

J.C. Penney Slides as Sears' Demise Casts Pall on Shares