Hudson’s Bay is preparing to wind down operations after failing to secure the necessary financial backing for a restructuring plan.
The historic Canadian retailer, which recently filed for bankruptcy protection in Canada, is expected to shut down by mid-June unless a last-minute rescue deal materialises.
Despite ongoing discussions with key stakeholders, particularly landlords, no agreement has been reached.
As a result, the company plans to begin liquidating inventory, furniture, and fixtures on Tuesday, pending court approval. The process is expected to wrap up by June 15.
Hudson’s Bay, which has been a staple of Canadian retail for over 350 years, currently runs 80 department stores under its own name, along with TheBay.com.
It also operates 13 Saks Off 5th and three Saks Fifth Avenue locations under licensing agreements. If the shutdown proceeds, more than 9,000 employees will lose their jobs.
“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, CEO and president of Hudson’s Bay.
In a court filing, the retailer pointed to post-pandemic economic conditions and trade tensions related to the Trump administration as major factors in its financial struggles.
The Ontario Superior Court of Justice granted Hudson’s Bay creditor protection earlier this month, along with CA$16 million in debtor-in-possession financing.
“While the applicants remain hopeful that a restructuring solution may still be identified that will see the company continue as a going concern, the only DIP financing that the company was able to secure (despite discussions with various potential financing providers) requires the applicants to immediately commence a full liquidation sale at all of its retail stores,” said Jennifer Bewley, chief financial officer at Hudson’s Bay, in court documents.
Moving forward, a consortium including Hilco, Gordon Brothers Canada, Tiger Asset Solutions Canada, and GA Capital Solutions has been appointed as the liquidation consultant, while Jones Lang LaSalle will oversee lease monetisation.
Hudson’s Bay warned that its closure would not only cost jobs but also significantly impact shopping centres across Canada by eliminating a key anchor tenant.
The company remains focused on securing last-minute support to preserve jobs and its long-standing role in Canadian retail.
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