Hudson’s Bay Co. ULC, citing insufficient financing commitment after its recent bankruptcy filing, warned it could begin a liquidation of its stores in Canada next week.
The bankruptcy filing did not include operations in the United States, which Hudson’s Bay had incorporated into a separate business, Saks Global, last summer.
The company has filed documents with the Ontario Superior Court of Justice indicating that, despite efforts to secure sufficient financing to pursue a restructuring transaction under Canada’s Companies’ Creditors Arrangement Act, it has only secured limited debtor-in-possession financing that will require the full liquidation of the entire business. As such, Hudson’s Bay Co. ULC could begin a store-by-store liquidation process as soon as next week.
The company, which operates Hudson’s Bay stores and hudsonsbay.com, as well as licensed Saks Fifth Avenue and Saks Off 5th stores in Canada, stated it remains hopeful key stakeholders, particularly its landlords, would engage with it to explore a viable alternative restructuring path that could preserve jobs, tenancy in retail locations and a company with deep historic significance.
“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, Hudson’s Bay, 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.”
