Founded in 1670, retailer Hudson’s Bay prepared to close more than 90% of stores due to serious financial difficulties.
The Supreme Court Judge Ontario Peter Osborne has allowed Hudson’s Bay to liquidate the goods at 74 of the 80 business locations, after the oldest company in Canada submit a credit protection application (credit protection) on March 7.
Protecting creditors is a legal measure to help businesses with financial difficulties restructuring and finding solutions to continue operating. The Court granted protection rights, temporarily preventing creditors from collecting debts or litigation in a certain period of time. This form is somewhat similar to the bankruptcy protection under chapter 11 of the US.
Hudson’s Bay Bike Bicycle Fly Bay at Montreal on March 17. Image: AP
Founded in 1760, Hudson’s Bay initially traded fur and other items and gradually became a symbol of the Canadian retail industry. They used to be an indispensable part of this social life, famous for the thick woolen products to help people fight the cold winter for hundreds of years. This brand is also associated with the image of “Voyageurs”, which is brave explorers to overcome large lands.
However, according to the dossier of submission of the Court, Hudson’s Bay is facing serious financial difficulties and urgently needs money to maintain operations. The retail chain is influenced by consumer spending, US -Canada trade tensions and travelers to the city central shops decreased after the pandemic.
Hudson’s Bay has delayed payment to the owner and supplier. In the end, they were forced to search for financial resources by closing the store. According to the ruling, they will liquidate the product until June 15. The stores in the liquidation will be completely closed on June 30.
“This is the only feasible solution at the moment. In my opinion, there is no other option,” said Judge Osborne.
According to the original plan, Hudson’s Bay must remove the entire system. However, the information is about to close a series of Canadian consumers rushing to shop, especially the products bearing the imprint of Hudson’s Bay such as striped blankets and household and fashion items.
As a result, recent sales exceeded expected, helping the brand retain 6 business locations, including the first store on Yonge Street (Toronto), two other stores in Ontario and the other three stores in Montreal.
“If you find the solution, you can add a store to escape from the liquidation list. But if you do not restructure it in time, these 6 stores will also have to close,” said Ashley Taylor, Hudson’s lawyer.
Attorney Taylor said the company would continue to “make every effort” to find a long -term solution for the financial situation, but also warned that “the door is gradually closing”.