Canadian retailer Hudson's Bay prepares to file for bankruptcy
Founded in 1670, Hudson's Bay has been penalized by years of rising inflation, as have other chains that sell non-essential products
Hudson’s Bay, Canada’s oldest retailer, is planning to file for bankruptcy, according to people with knowledge of the matter.
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The department chain has been unable to secure financing to shore up its cash reserves, said some of the people, who asked not to be identified discussing a private matter. Hudson’s Bay has also been delaying payments to suppliers, they added. The retailer’s plans could change, the people said.
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A representative for Hudson’s Bay said the company does not comment on “rumour or speculation.” The Wall Street Journal reported earlier on the company’s bankruptcy plans.
Last year, the retailer separated into a standalone entity, after parent Hudson’s Bay Co. agreed to buy United States department store chain Neiman Marcus Group and tapped the junk-bond market for US$2 billion to do so. The deal pooled Neiman Marcus and its Bergdorf Goodman unit together with HBC’s high-end department store chain, Saks Fifth Avenue, in the newly established Saks Global.
That left Hudson’s Bay as its own business with its stores, online platform TheBay.com, a $2 billion retail portfolio and “significantly reduced leverage and enhanced liquidity,” according to a statement at the time.
Hudson’s Bay, founded in 1670, has been penalized by years of rising inflation, as have other chains that sell non-essential products. The retailer has at least 80 stores, with 36 in Ontario, according to its website.
Hudson’s Bay, which sold a string of real estate assets to help pay down debt in November 2023, has been cutting costs. In January, it cut 41 employees, according to a report from the Canadian Press. Last year, the retailer laid off about one per cent of its workforce in April, before announcing new rounds of layoffs.
Bloomberg.com
