Hudson’s Bay Company (HBC) is a unique legacy retail brand, dating back to 1670. It is now making some bold moves to get ahead of its current fiscal crisis. In late October HBC went into court protection from creditors under the Companies’ Creditors Arrangement Act. As part of this restructuring effort, the company aims to save six of its 80 retail stores, alongside its e-commerce business.
Originally founded as a fur trading company, HBC has transformed over the centuries into one of North America’s leading retail groups. It was given a royal charter by King Charles II, making its story a notable one in Canadian as well as British history. HBC is acting now because the financial pain is acute. Therefore they’ve turned on a fire sale mode at all their stores – 13 Saks Off Fifth locations, and three Saks Fifth Avenue.
This decision to hold an auction is a rare but smart use of strategy on HBC’s part. Among the items of art and culture the company has announced plans to sell are its most culturally-important pieces, including its royal charter. This auction would represent an important lifeline financially as the company continues to try and find its way through the restructuring process.
HBC’s leadership remains optimistic about the future. By focusing on saving key stores and its online business, the company aims to preserve its legacy while adapting to changing market conditions.
