Hudson’s Bay Plans For Full Liquidation

The end may be near for Canada’s oldest company.

One week after they commenced proceedings under the Companies’ Creditors Arrangement Act for creditor protection, Hudson’s Bay announced late Friday night that it had filed documents with the Ontario Superior Court of Justice indicating that it has only secured limited financing that will require the full liquidation of the entire business.

Court documents show that the company owes more than $950 million to creditors, including suppliers and landlords.

A store-by-store liquidation process will begin as soon as next week.

Despite this, the company said it remains hopeful that key stakeholders, particularly its landlord partners, will engage to explore a viable alternative restructuring path that could preserve jobs, tenancy in retail locations, and a company with deep historic significance before it is too late.

A press release said this alternative would necessitate significant capital and immediate and substantial cooperation from landlords and other critical partners.

“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 Chief Executive Officer of Hudson’s Bay. “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 employs approximately 9,364 people in Canada at 80 Hudson’s Bay stores, TheBay.com. Through a licensing agreement, three Saks Fifth Avenue and 13 Saks OFF 5TH stores also operate in Canada under Hudson’s Bay Company ULC.

Employees at the Windsor location are represented by Unifor Local 240, with their contract set to expire at the end of 2025.

Earlier this week, the union said workers have been concerned about the future of the Company for some time and pointed to issues such as broken elevators, escalators, and HVAC trouble that saw the Devonshire Mall location closed for several weeks this past summer.  The basement was closed after flood damage in August 2017.

A visit to the store Friday evening shows a closed washroom and a broken escalator.

Assuming approval in court on Monday, store liquidations will begin next week. During the liquidation process, Hudson’s Bay and its licensed Canadian Saks Fifth Avenue and Saks Off 5th stores will remain open and, for a limited time, online at TheBay.com. The Company will share additional details regarding impacted locations, closure timelines, and customer accommodations, including final sales events early next week.

Once the liquidation sale begins, all sales will be final.