Hudson’s Bay is set to be back in court on Monday, 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.
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.
Origins of Hudson’s Bay
Hudson’s Bay Company, in its original form, was founded by fur traders and owned a vast tract of northern Canada around Hudson Bay where it operated a far-flung chain of trading posts.
Dating back to 1670, it has been deeply entrenched in Canadian history, but has been led by Americans for several decades now.
The architect behind most of the Bay’s modern history is Richard Baker, an American real estate titan whose National Realty and Development Corp. Equity Partners bought the company in 2008 from the widow of late South Carolina businessman Jerry Zucker for $1.1 billion.
Baker took it public in 2012, only to reverse course through a takeover bid that had to be sweetened twice before shareholders accepted it in early 2020, ahead of the COVID-19 pandemic lockdowns.
