Hudson’s Bay, Canada’s largest operator of department stores, is seeking court approval to proceed in Ontario. They’re hoping to reach an appropriate restructuring agreement that will keep six of their locations out of a liquidation sale. Among the key moves, the company is asking for creditor protection to prevent the shutdowns in many of those key locations. This includes important locations such as central Montreal, Carrefour Laval shopping center, and Pointe-Claire, Quebec. These stores had just recently been saved from liquidation, but the clock to save them for good is still ticking.
The restructuring agreement doesn’t go entirely according to Hudson’s Bay’s wishes. It is key to the company’s operational and financial health. This suggests that the department store was looking to negotiate a deal for more time. This would give them a fighting chance to carve out a sustainable path forward and rescue more of their outlets. The current agreement stipulates that Hudson's Bay must begin liquidating the six rescued stores by April 5 if it fails to secure a viable transaction by April 4 that would satisfy some of its debts to lenders.
Hudson’s Bay has already begun liquidation sales in the majority of its 80 stores. That involves 13 Saks Off Fifth locations and three Saks Fifth Avenue shops. This move represents the latest and largest stage in the chain’s reorganization process as it faces mounting monetary losses.
While the department store giant operates a flagship location on Toronto's Yonge Street and has outlets in Yorkdale mall and Hillcrest Mall in Richmond Hill, Ontario, saving the six stores in Quebec remains a priority for Hudson's Bay. The retail giant believes in saving some form of its existing retail footprint. Given the enormous pressure they faced from creditors, their decision to proceed with this agreement speaks to their resolve.
