Hudson’s Bay Company faces liquidation
Hudson’s Bay Company is seeking court approval to begin a liquidation of its business.
In court filings, Canada’s oldest retail company said that despite “exhaustive” efforts it was unable to secure adequate funds needed to facilitate a restructuring transaction under the Companies’ Creditors Arrangement Act (CCAA). It only obtained limited debtor-in-possession financing, with the financing not enough to avoid a full liquidation its business. A store-by-store liquidation process will begin as soon as next week barring any last minute solutions.
During the liquidation process, Hudson’s Bay and its licensed Canadian Saks Fifth Avenue and Saks Off 5th stores will remain open.
The retailer said it remains hopeful that key stakeholders, particularly its landlord partners, will engage to explore a viable alternative restructuring path that could preserve jobs and tenancy in retail locations.
Earlier this month, Hudson’s Bay started proceedings under the CCAA pursuant to an initial order for creditor protection from the Ontario Superior Court of Justice, citing trade tensions with the U.S., economic headwinds and post-pandemic consumer shifts. (The move is akin to a Chapter 11 bankruptcy filing in the U.S.)
“Our team has worked incredibly hard to identify a viable path forward, and our resolve is strengthened by the overwhelming support from customers and associates who have shared heartfelt stories about Hudson’s Bay and what our stores have meant to them, their families, and their communities across the generations,” said Liz Rodbell, president and CEO. “These powerful experiences remind us why we must continue to pursue every possible opportunity to secure the necessary support from key landlords and other stakeholders to save The Bay.”
Hudson’s Bay Company employs 9,500 people. Its portfolio includes Hudson’s Bay, which operates 80 stores and an e-commerce site. Through a licensing agreement, three Saks Fifth Avenue and 13 Saks Off 5th stores also operate in Canada under Hudson’s Bay Company.
