TORONTO – Hudson’s Bay Company, Canada’s historic department store retailer, announced on Friday that it has been unable to secure sufficient financing for its proposed restructuring under the Companies’ Creditors Arrangement Act (CCAA). As a result, the company is preparing for full liquidation, starting with a store-by-store process expected to begin as soon as next week.
The Toronto-based retailer confirmed it had only secured limited debtor-in-possession financing, which would necessitate the closure of its entire business. Despite this setback, Hudson’s Bay expressed hope that key stakeholders, especially its landlord partners, would engage in discussions to explore an alternative restructuring plan that could save jobs and preserve retail locations.
“We have worked tirelessly to find a sustainable path forward, and the overwhelming support from our customers and associates has only strengthened our determination,” said Liz Rodbell, President and CEO of Hudson’s Bay. “The heartfelt stories shared by our loyal customers remind us of the deep impact Hudson’s Bay has had across generations, and we remain committed to pursuing every possible option to secure the support needed to keep our beloved stores alive.”
While the liquidation process moves forward, Hudson’s Bay and its licensed Canadian Saks Fifth Avenue and Saks Off 5th stores will remain operational, both in-store and online, for a limited time.
This development comes just days after Hudson’s Bay filed for creditor protection with the Ontario Superior Court of Justice, initially seeking to restructure and revitalize its operations. The retailer’s failure to secure adequate financing has now shifted the company’s focus to liquidation, leaving its future uncertain.
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