Canadian department store chain Hudson’s Bay Company has revealed plans to initiate a full liquidation of its business as it failed to obtain the necessary funding to proceed with a restructuring plan.
The company, with a workforce of 9,364, has stated in the filings submitted to the Ontario Superior Court of Justice that it has only obtained limited debtor-in-possession financing – insufficient to avoid liquidating the entire business. This is despite attempts to secure adequate funds to facilitate a restructuring transaction under the Companies’ Creditors Arrangement Act (CCAA).
The company is set to commence store-by-store liquidation as early as the week beginning 17 March 2025 unless an alternative solution is found.
However, Hudson’s Bay remains optimistic that its landlord partners and other key stakeholders will come forward to discuss other possible restructuring options.
These alternatives would require significant capital and immediate, extensive co-operation from landlords and other essential partners.
A full closure of Hudson’s Bay would not only lead to substantial job losses but also impact the retail landscape in Canada by removing a major anchor tenant from malls, which would affect customer traffic drastically.
The company operates 80 Hudson’s Bay stores and TheBay.com. It also holds licensing agreements for a selection of Canadian Saks Fifth Avenue and Saks Off 5th locations.
Hudson’s Bay president and CEO Liz Rodbell stated: “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.
“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 will keep its doors open at both its namesake stores and licensed Canadian Saks Fifth Avenue and Saks Off 5th locations. Customers can still shop in-store and online at TheBay.com for a limited duration.
The retailer will continue to disclose further details regarding affected locations. Timelines for closures and customer accommodations such as final sales events will be communicated by the company.
“Hudson’s Bay moves toward liquidation amid finance challenges” was originally created and published by Retail Insight Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
