A chapter that started in 1670 could be coming to a close as Canada’s oldest company possibly will begin store-by-store liquidation.
Hudson’s Bay Company ULC, which includes Hudson’s Bay and TheBay.com, filed documents late last week with the Ontario Superior Court of Justice to liquidate the business. According to the filed documents the liquidation request is despite efforts to secure sufficient financing to go forward with a restructuring transaction under the Companies’ Creditors Arrangement Act.
A release from the company reads, “This alternative would necessitate significant capital and immediate and substantial cooperation from landlords and other critical partners.”
The release adds the closure of the Hudson Bay Company will result in the country losing a key employer, as the company employs roughly 9,300 people, and will drastically change mall dynamics across the country “by removing a major anchor and driver of customer traffic.”
“The company is focused on securing the support needed to preserve as many jobs as possible while maintaining its longstanding position in Canadian culture and the economy.”
The decision about the liquidation from the courts is expected to be made Tuesday afternoon. If the courts approve the request Hudson’s Bay locations, including the 13 locations in Alberta, along with licensed Canadian Saks Fifth Avenue and Saks Off 5th stores will remain open to serve customers in stores and online at TheBay.com for a limited time. The company is said to be looking at closing down the 96 locations in a 10 to 12 week period.
As of the beginning of the year the company had roughly $3 million in cash on hand, $1.13 billion in secured debt, and owed roughly 1,900 unsecured creditors including brands, governments and landlords around $450 million. On March 7th the company filed for creditor protection under the Companies’ Creditors Arrangement Action to avoid bankruptcy. At the time the company had shared plans to restructure and close a handful of stores.
