Hudson's Bay Co. is considering buying U.S. retailer Saks Inc., according to a source close to the potential deal.

The source says Canada's largest department store chain has been eyeing the beleaguered high-end retailer since it began looking for a buyer several months ago.

The source says HBC is looking to buy all the department stores under the Sak's banner, and would likely keep them open under the same company name.

Founded in 1670, HBC owns 48 Lord & Taylor department stores in the eastern United States.

It also operates 90 Hudson's Bay department stores and 69 Home Outfitters housewares stores across Canada.