Hudson’s Bay is set to be back in court on Monday morning, where it will seek approval to begin liquidating its entire business, putting more than 9,000 jobs at risk.
The department store, which holds the title of Canada’s oldest company, says it has been forced toward a full liquidation because “exhaustive” efforts haven’t turned up the financing it needs to keep at least some of its empire alive.
Given the company’s financial situation, it wants to conclude the liquidation process by June 15.
But it says it remains optimistic it can drum up capital and find a solution with key stakeholders, particularly its landlord partners, to avoid a full shutdown.
Court documents paint a grim picture of Hudson’s Bay Company’s finances, revealing nearly $1 billion in debts to various creditors including fashion brands, banks and governments. With just $3 million on hand, the company can barely pay its staff.
In an application to the Ontario Superior Court of Justice, Hudson’s Bay said it was struggling because of subdued consumer spending, trade tensions between the U.S. and Canada, and post-pandemic drops in downtown store traffic.
The retailer owns 80 Hudson’s Bay locations as well as three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada, through a licensing agreement.
