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

Why Diversity Should be a Corporate Priority

Why Diversity Should be a Corporate Priority

3 Things to Know at Market Close: Netflix, Chinese New Year, and KPMG

3 Things to Know at Market Close: Netflix, Chinese New Year, and KPMG

Surprise! Women Do Care About Money Says KPMG Study

Surprise! Women Do Care About Money Says KPMG Study

Deutsche Bank Confirms Internal Probe Over Money Laundering Scandal

Deutsche Bank Confirms Internal Probe Over Money Laundering Scandal

Viacom Reportedly Considering Majority Stake Sale of China Operations

Viacom Reportedly Considering Majority Stake Sale of China Operations