Liz Rodbell, Hudson’s Bay’s CEO and president, said: “Hudson’s Bay has been a vital retailer to Canadians for generations, and this decision was made with the best interests of our customers, associates, and partners in mind.
“While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape, despite the sector-wide challenges that have forced other retailers to exit the market.”
Hudson’s Bay also dealt with pressures from the higher cost of living as well as the weakening Canadian dollar, which led to cautious customer spending.
Rodbell added: “Earlier this year, we worked with potential investors to refinance a portion of our credit facilities to improve our liquidity and support our business plan.
“However, the threat and realization of a trade war have created significant market uncertainty and have impacted our ability to complete these transactions.”
Hudson’s Bay reported a net loss of CA$329.7 million and had an EBITDA of roughly negative CA$67.9 million in the fiscal year ending on 31 January, according to another filing as reported by the Retail Dive.
Moving forward, the company will introduce smaller format stores while the Canadian Saks Fifth Avenue and Canadian Saks Off 5th will stay open.
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