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The
department store company that dates back to 1670 announced the
move Friday evening, saying it has been facing “significant”
pressures, including subdued consumer spending, trade tensions
between the U.S. and Canada and post-pandemic drops in downtown
store traffic.
“While very difficult, this is a necessary step to strengthen
our foundation and ensure that we remain a significant part of
Canada’s retail landscape, despite the sector-wide challenges
that have forced other retailers to exit the market,” Liz
Rodbell, president and CEO of Hudson’s Bay said in a press
release.
“Now more than ever, it is critical that Canadian businesses are
protected and positioned to succeed.”
As part of the filing it made with the Ontario Superior Court of
Justice on Friday, Hudson’s Bay said it was exploring several
strategic options to strengthen its business and said it would
not make promises but was committed to preserving jobs where
possible.
While the process can lead to the sale or closure of a business,
Hudson’s Bay appears intent on avoiding those possibilities and
keeping much of its sprawling retail footprint alive.
The company has 80 Hudson’s Bay locations that sell everything
from apparel to housewares, cosmetics and furniture.
Through a licensing agreement, it also owns three Saks Fifth
Avenue stores and 13 Saks Off 5th locations in Canada, which
will continue to operate.
Saks Global, which owns U.S. Saks locations as well as Neiman
Marcus and Bergdorf Goodman stores, is not connected to the
creditor protection filing that was made as the U.S. continued
to threaten Canada with additional tariffs Friday.
Rodbell said the U.S.’s earlier provocations had already harmed
Hudson’s Bay. While the company was negotiating with potential
investors to bring more liquidity to the business, the threats
and eventual implementation “created significant market
uncertainty” that ultimately stopped any possible deals from
closing.
The company spent the last several years in a state of
deterioration as it closed several stores and carried out
several rounds of layoffs..
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