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UPDATE 2-Hudson's Bay loss widens on heavy discounts, lower sales

(Adds details from CEO comment, background)

Sept 12 (Reuters) - Canadian department store operator Hudson's Bay Co reported a wider second-quarter loss on Thursday, hurt by store closures, heavy discounting and declining sales at the retailer's name brand.

The company has been fighting a tough retail environment as e-commerce behemoth Inc and other department stores such as Macy's and Nordstrom Inc continue to swoop up more customers with discounts.

In June Executive Chairman Richard Baker teamed up with other shareholders to offer to take the retailer private in a C$1.74 billion cash deal.

A special panel of the company reviewing the bid, however, said in August the offer was inadequate based on an initial analysis.

Over the past few years Hudson's Bay has been closing stores and selling units to sustain business. Last month, it said it would sell its Lord + Taylor department store business to fashion rental service company Le Tote Inc for about $100 million.

The company has identified 15 stores it will close on a rolling basis throughout 2019.

Chief Executive Officer Helena Foulkes said with the Lord + Taylor sale agreement, the company's focus is now squarely on Saks Fifth Avenue and Hudson's Bay businesses.

Comparable sales at Saks Fifth Avenue rose 0.6% and that at Saks OFF 5TH climbed 3.4% in the second quarter, driven by new customers and notable gains in jewelry, women's modern clothing and men's classic apparel segments.

Still total revenue fell to C$1.85 billion from C$1.86 billion and gross margin fell 530 basis points to 34%.

"This quarter we responded as the market moved early to discount merchandise in both luxury and Canadian retail," Foulkes said.

Net loss from continuing operations widened to C$462 million from C$104 million.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shinjini Ganguli)