Hudson’s Bay Plans Complete Liquidation, Putting 9,000 Jobs at Risk
Hudson’s Bay Co plans to liquidate its entire business as early as next week unless it secures additional financing, the 354-year-old Canadian retailer said in court filings, putting more than 9,000 jobs at risk across the country.
The iconic department store chain, which traces its roots back to 1670, announced late Friday that “exhaustive” efforts to secure financing had failed, forcing it to pursue a full liquidation of its 80 stores pending court approval on Monday.
“Without an immediate liquidation across retail stores, it is not expected that Hudson’s Bay would be able to repay its obligations under the financing it did secure,” Jennifer Bewley, chief financial officer for Hudson’s Bay’s parent company, said in an affidavit filed Friday.
The retailer owes more than $950 million to creditors including landlords, suppliers and fashion brands such as Chanel, Columbia Sportswear, Diesel, Estee Lauder, and Ralph Lauren.
Hudson’s Bay attributed its financial struggles to subdued consumer spending, trade tensions between the United States and Canada, and decreased foot traffic in downtown locations following the pandemic.
“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…” Hudson’s Bay president and CEO Liz Rodbell said in a statement.
Retail experts say the planned closure marks the end of an era for a company deeply woven into Canadian identity.
The liquidation would leave vacant anchor tenant spaces in malls and prime real estate in high-traffic shopping districts across Canada. The company’s stores often occupy several floors and significantly more square footage than other retailers.
Ontario would be hardest hit, with 32 of the company’s stores located in the province. British Columbia has 16 locations, while Alberta and Quebec each have 13. Manitoba, Nova Scotia and Saskatchewan have two stores each.
Union representatives for about 320 workers at three Ontario stores and a Toronto warehouse called on the company to “uphold its legal obligations to workers” and provide transparent communication about closures and severance protections.
The company’s history is intertwined with Canada’s development. Originally established as a fur trading business, Hudson’s Bay has been led by Americans for several decades. Richard Baker’s National Realty and Development Corp. Equity Partners purchased it in 2008 for $1.1 billion.
Baker took the company public in 2012 before privatizing it again in 2020 through a takeover bid that required multiple revisions to secure shareholder approval. The liquidation process is expected to conclude by June if approved by the court.
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