Toronto – The oldest retailer in Canada, Hudson’s Bay, has requested the protection of creditors and intends to restructure the business.
The department store company that dates back to 1670 announced the move on Friday night, saying that it has faced “significant” pressures, including the submitted spending of the consumer, commercial tensions between the United States and Canada and the fallen after the pandemic in the traffic of the center store.
“While it is very difficult, this is a necessary step to strengthen our base and ensure that we are still an important part of Canada’s retail panorama, despite the challenges throughout the sector that have forced other retailers to get out of the market,” said Liz Rodbell, president and executive director of Hudson’s Bay in a press release.
“Now more than ever, it is essential that Canadian companies are protected and positioned to succeed.”
As part of the presentation he made with the Superior Court of Justice of Ontario on Friday, Hudson’s Bay said he was exploring several strategic options to strengthen his business and said he would not make promises, but was committed to preserving the work when possible.
While the process can lead to the sale or closure of a business, Hudson’s bay seems to intend to avoid those possibilities and keep a large part of its extensive retail footprint.
The company has 80 locations by Hudson’s Bay that sell everything, from clothes to home, cosmetics and furniture.
Through a license agreement, it also has three Saks Fifth Avenue stores and 13 Saks of the fifth location in Canada, which will continue to operate.
Saks Global, owner of the United States locations, as well as Neiman Marcus and Bergdorf Goodman stores, is not connected to the presentation of creditor that took place when the United States continued to threaten Canada with additional tariffs on Friday.
Rodbell said that the previous provocations of the United States had already harmed Hudson’s Bay. While the company was negotiating with possible investors to provide more liquidity to the business, threats and eventual implementation “created a significant uncertainty in the market” that finally prevented the possible closing from closing.
The company spent the last years in a state of deterioration, since it closed several stores and carried out several rounds of layoffs.
