The North -American retailer Hudson’s Bay Company has started the protection procedures for creditors under the Creditors Act (CCAA) of the Companies, a strategic step for recovery in the midst of Canadian retail challenges.
Hudson’s Bay has consulted with legal and financial advisers before the decision is made public. Alvarez & Marsal Canada has been appointed by the court as the monitor for the procedure.
The company points to current trade conflicts with the US, economic turbulence and changes in consumer behavior Post-Pandemic as catalysts for the relocation.
The initial judicial order of the Ontario Superior Court of Justice offers Hudson’s Bay and its subsidiaries a protective stay of ten days proceedings, with possible extensions to the court. This stay also applies to the Joint Venture of Hudson’s Bay with Riocan.
Restore Capital, a Hilco Global Affiliate, together with other lenders, promised interim debtor-in-own financing to support Hudson’s Bay Operations to the hearing “comeback motion”.
AC $ 16 million advance was punished in the first week of March 2025 and Hudson’s Bay is looking for extra financing to maintain activities during the CCAA process.
Hudson’s Bay President and CEO Liz Rodbell stated: “Although it is very difficult, this is a necessary step to strengthen our foundation and to ensure that we remain an important part of the Canadian retail landscape, despite the sector -wide challenges that other retailers have forced to leave the market. Now it is more crucial than ever that Canadian companies are protected and positioned to succeed.
“Earlier this year we collaborated with potential investors to refinance part of our credit facilities to improve our liquidity and support our business plan. However, the threat and realization of a trade war has created considerable market uncertainty and has influenced our ability to complete these transactions. “
Hudson’s Bay is considering strategic options and is in conversation with stakeholders to identify viable solutions to maintain and strengthen its activities.
Although the results are uncertain, it is said that the discussions show the company’s dedication to maintain employment and community relationships.
The CCAA process enables the company to streamline its activities and costs and to concentrate on its primary competencies.
The company operates Hudson’s Bay and Thebay.com and holds license agreements for a selection of Canadian Saks Fifth Avenue and Saks from the 5th locations.
The license agreement ensures that both Canadian Saks Fifth Avenue and Saks 5one Locations will continue their activities continuously.