Latest news with #CCAA
Business Wire
a day ago
- Business
- Business Wire
RioCan Successfully Transitions the RioCan-HBC Joint Venture into a Receivership Process to Preserve and Maximize the Value of its Assets
TORONTO--(BUSINESS WIRE)--RioCan Real Estate Investment Trust ('RioCan' or the 'Trust') (TSX: announced today that a receivership process has been established to protect the interests of RioCan and the other stakeholders in the RioCan-HBC Joint Venture (the 'JV'). The receivership proceeding will create a structured process within which RioCan can work with a receiver and other stakeholders to advance and execute solutions for the JV's properties to benefit the JV and its stakeholders. This includes activities such as dispositions, re-leasing and advancing potential redevelopment opportunities of individual properties. RioCan's exposure to Hudson's Bay Company ('HBC'), whether as a limited partner, secured lender or guarantor of certain JV obligations remains unchanged as a result of the receivership proceeding. For further information on the JV, please refer to RioCan's press release dated March 18, 2025, RioCan Real Estate Investment Trust Provides Update on Hudson's Bay Company's CCAA Filing. The Ontario Superior Court of Justice (Commercial List) has granted RioCan's application to appoint FTI Consulting Canada Inc. ('FTI' or the 'Receiver') as the receiver over all of the assets and properties of the JV. The JV's receivership proceeding will be a single proceeding that focuses solely on the JV's assets, and advanced in parallel with the HBC Companies' Creditors Arrangement Act ('CCAA') proceeding. FTI, as the Receiver, will immediately take steps and actions with respect to the JV and its assets in order to preserve and maximize value for the benefit of RioCan and other JV stakeholders. FTI has extensive experience in restructurings and court-appointed receivership proceedings. FTI will oversee the affairs of the JV specifically, managing the process independently of the HBC CCAA proceeding. Pursuant to the court order appointing the Receiver, the JV's leasehold and 100% owned properties will benefit from a stay of proceedings to allow the Receiver and its stakeholders sufficient time to take such steps as are necessary to effectively deal with the JV's assets. The co-owned properties of the JV will continue to be managed by RioCan in the normal course. About RioCan RioCan is one of Canada's largest real estate investment trusts. RioCan owns, manages and develops retail-focused, mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at March 31, 2025, our portfolio is comprised of 177 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan's interest). To learn more about us, please visit Forward-Looking Information This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan's objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terminology such as 'outlook', 'objective', 'may', 'will', 'would', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'should', 'plan', 'continue', or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan's current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the ' Risks and Uncertainties ' section in RioCan's MD&A for the three months ended March 31, 2025 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan's views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Hamilton Spectator
5 days ago
- Business
- Hamilton Spectator
U.S. court case sees Saks Global accuse lender of contributing to Bay's demise
TORONTO - Saks Global is putting some of the blame for Hudson's Bay's demise on one of the faltering department store's top lenders. A letter Saks Global filed earlier this month in a New York lawsuit against Pathlight Capital LP said the lender was a 'direct cause' of Hudson's Bay's inability to secure 'much-needed financing.' 'As a result of these actions and inactions by Pathlight, HBC was forced to initiate restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) in Canada,' Saks Global chief legal officer Andrew Woodworth said in a March 26 letter to Pathlight's managing director. 'Pathlight's ongoing intransigence further frustrated HBC's CCAA proceedings, and, on March 21, 2025, forced HBC to announce a near total liquidation.' After the letter was sent on March 26, Hudson's Bay determined that it was not going to find the money it needed to keep all of its stores alive. With little hope left, Canada's oldest company decided to take its liquidation even further and is due to sell off all merchandise at its 80 stores and 16 under the Saks name by Sunday. The Saks stores in Canada were operated through a license Hudson's Bay had with Saks Global. Neither company nor lawyers for the firms or Pathlight immediately responded to a request for comment. Saks Global was formed last year, when Hudson's Bay purchased Neiman Marcus and Bergdorf Goodman and spun them out with its existing Saks Fifth Avenue into a new company. Court documents say that transaction was made possible in part because Pathlight agreed to release Saks Global from obligations under a loan the Bay had in exchange for millions in payments. Now, Pathlight is suing Saks Global because it has yet to be paid US$8.8 million it is owed. Saks is refusing to pay the sum because it says Pathlight 'cannot and should not benefit from its own actions,' which hurt the Bay. At the start of Hudson's Bay's creditor protection case in Canada, Pathlight was listed as a secured creditor owed more than $95 million. This report by The Canadian Press was first published May 30, 2025.
Yahoo
6 days ago
- Business
- Yahoo
Lender Pathlight Sues Saks After Clearing the Way for the Neiman's Deal
Saks Global has fallen out with Pathlight Capital, which helped clear the way for the luxury retailer's $2.7 billion acquisition of Neiman Marcus last year, but has now sued the company, claiming it's still owed $8.8 million in fees. In turn, Saks alleges that Pathlight's 'lack of good faith' led to the Hudson's Bay restructuring. More from WWD Hudson's Bay Signs Lease Deal With Chinese Billionaire Saks Global's Emily Essner on Navigating Luxury Amid Uncertainty Resurrecting Hudson's Bay, in a Limited Way While the money at stake is relatively small, the suit, filed May 21 in New York Supreme Court, comes at a delicate time for Saks, which declined Wednesday to comment on the case. The deal to acquire Neiman's marked the start of Saks' attempt to reset the U.S. luxury retail scene. The combination has spurred on big changes at both Neiman's and Saks, generated millions in costs and led to a luxury storefront on Amazon. But vendors have chafed at past-due bills and new, slower payment terms. Bondholders, meanwhile, have soured on debt the company raised just six months ago, trading some of the $2.2 billion in junk bonds used to fund the Neiman's acquisition down to as low as 38 cents on the dollar. The Pathlight suit, which shines a light on how the retail buyout came together last year, is one more moving part and potential expense. Pathlight has been a partner to Saks for years, extending it and its former parent company, Hudson's Bay Co., a senior secured term loan facility in 2020. The suit said that Hudson's Bay and Saks Global requested that Pathlight 'restructure the outstanding debt of HBC and…Saks Global,' a switch that was 'critical to facilitating the complex purchase-and-spinoff transaction' with Neiman's. In return for amending the credit facility and giving Hudson's Bay a $65.6 million term loan, Pathlight said Saks agreed to pay it $5 million on Jan. 6. That payment was made. But Pathlight said Saks also agreed to pay $4.4 million in March and another $4.4 million in April if its term loans to Hudson's Bay were not repaid. 'Pathlight fully performed its obligations,' the suit said. 'But the term loans were not repaid; therefore, Saks Global was required to timely pay the second and final installments but has failed to do so.' The suit includes a March 26 letter from Saks' chief legal officer Andrew Woodworth to Pathlight refusing to pay the remaining $8.8 million and alleging that the lender tripped up Hudson's Bay's efforts to refinance the term loan, which would have gotten the company off the hook for the follow-up payments. 'Pathlight failed to reasonably support opportunities presented by HBC, and such failure and lack of good faith cooperation has been the direct cause for HBC's inability to secure this much-needed refinancing. As a result of these actions and inactions by Pathlight, HBC was forced to initiate restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) in Canada,' which is akin to bankruptcy. 'Pathlight's ongoing intransigence further frustrated HBC's CCAA proceedings, and, on March 21, 2025, forced HBC to announce a near total liquidation,' Woodworth wrote for Saks. 'Pathlight has not acted in good faith, has frustrated HBC's ability to refinance the specified term loan transactions, and has thereby deprived HBC of the opportunity to obtain much-needed financing. Pathlight cannot and should not benefit from its own actions, which deprived HBC of its ability to finance its operations.' Pathlight's managing director Matt Williams shot back the next day and said 'Pathlight's alleged bad-faith dealings with HBC…have no bearing on Saks Global's obligation to pay the structuring fee.' Now the two are in court and Saks' lawyers have promised to respond to the company by July 22. In Saks world, that's a lifetime away. In the meantime, the retailer owes bondholders a $120 million interest payment on June 30, needs to start paying vendors for new shipments and also has to start making back payments to brands who were owed money for shipments made over the past two years. Best of WWD The Biggest Legal Battles Shaping the Fashion Industry Today PETA Asks Lululemon About Slaughterhouse Practices China's Livestreaming Star Viya Fined $210 Million for Tax Evasion Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Hudson's Bay to lay off 89% of employees amid CCAA proceedings
Canada's Hudson's Bay Company is planning to lay off 8,347 employees, or 89% of its workforce, by 1 June 2025. In a motion filed on 26 May 2025, Hudson's Bay stated that employees 'will be paid their accrued vacation pay as at their date of termination, however, the company does not expect any other termination or severance payments to be paid by the company upon termination'. The layoffs come as the retailer prepares to complete its liquidation sale and shut down all its stores. Founded in 1670, Hudson's Bay department stores have long anchored shopping malls across the country. However, the stores have struggled in recent years with reduced foot traffic and the growing dominance of online commerce. The planned layoffs occur against a backdrop of rising unemployment in Canada, with the national jobless rate reaching 6.9% in April 2025 - the highest level since November 2024, as reported by Reuters. Canada's export-driven economy has also been affected by US tariffs. The company is pursuing a declaration under the Wage Earner Protection Program Act (WEPPA) to support affected employees. This declaration would enable terminated workers to receive eligible unpaid wages, including severance and termination pay, salaries, commissions and vacation pay. In March 2025, Hudson's Bay announced that it would pursue a full liquidation of its stores unless an alternative could be found. The move followed the initiation of restructuring proceedings earlier that month. Of 1,017 employees remaining after 1 June, 899 are expected to lose their jobs around 15 June when the company's distribution centres close. The final 118 workers will remain to assist with winding down operations under the Companies' Creditors Arrangement Act (CCAA). Prior to the liquidation process, Hudson's Bay employed 9,634 people across 96 stores, four distribution centres and its head office. Hudson's Bay's brand assets, including its coat of arms and signature stripes, were acquired by the Canadian Tire Corporation for C$30m ($21m) in May 2025. "Hudson's Bay to lay off 89% of employees amid CCAA proceedings" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Hamilton Spectator
28-05-2025
- Business
- Hamilton Spectator
Hudson's Bay to close all its stores and terminate 8,000 employees on June 1
Canada is about to see the largest wave of job losses since the closure of Sears Canada, with its oldest company, Hudson's Bay , set to close all its stores on June 1, marking the end of an era. The 355-year-old company said in a court document filed Monday evening that it will have terminated about 8,340 employees — approximately 89 per cent of its current workforce — by Sunday when it completes the liquidation of more than 80 stores across the country. Another 899 employees will lose their jobs around June 15, with some 120 staying on to assist with the final wind-down of the retail giant. The last time Canada saw layoffs on this scale was in 2018, when Sears Canada shut down more than 100 stores nationwide, putting 12,000 people out of work — many of whom also faced deficits in their pension plans . 'It is really sad. I don't have any words to comfort anyone,' said Hazel Harris, 60, who has poured her 'blood and sweat' into the Hudson's Bay e-commerce distribution centre in Scarborough for seven years, where she hoped to retire. 'What do I do now? How am I going to keep the roof over my head?' said Harris who was laid off on May 1. The Canadian retail icon, saddled with more than $1 billion in debt , filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) in early March. While the company made last-minute efforts to find a buyer or investor to save its business, it has concluded that no part of its operations can be salvaged, according to a court document filed Monday. 'It was necessary for the Company to make the difficult decision to significantly reduce employee headcounts to align with the winddown of the liquidation sale and rolling closure of store locations and required employee positions,' the court document read. Hudson's Bay has told employees they will not receive severance pay at the time of termination and has ended several benefits since the liquidation began, including pension payments to some former senior executives and post-retirement health and dental benefits for 2,000 retirees. The defined pension contribution and defined benefit pension for most of the retailer's employees are sufficiently funded. 'We feel very sad, very aligned with the employees and very much attuned to their concerns,' said Susan Ursel, whose law firm Ursel Phillips Fellows Hopkinson, was appointed to represent Hudson Bay's employees and retirees. The firm has created a webpage to update workers. 'We're working very hard to find every means of alleviating their loss of employment.' The only piece of reassuring news for Hudson's Bay employees is that the retailer will apply to the court next Tuesday to declare that it meets the criteria for the federal Wage Earner Protection Program (WEPP), which would trigger employees' entitlements to benefits under the program. WEPP provides a one-time payment of up to seven weeks of insurable earnings, up to a maximum of $8,844 to employees whose former employer has filed for bankruptcy or protection under the CCAA, said Ursel. Ursel added that her law firm is 'negotiating very hard' with Hudson's Bay about a hardship program that will provide monetary assistance to current and former workers who are in financial distress. On Tuesday, the massive Scarborough distribution centre sat in eerie silence — rows of shelves stood empty, and conveyor belts that once hummed with activity were now lifeless. Outside of the building, Unifor, which represents about 600 Hudson's Bay employees, organized a rally to call on federal government to reform the insolvency laws to better protect workers' wages and benefits. 'Unifor is demanding that HBC pay all owed severance and unpaid wages, protect pensions and benefits and treat its workers with the dignity and respect that they have earned,' said Nena Bogdanovich, Toronto area director of Unifor. 'This is about justice. This is about fairness. We're not backing down,' she said. While workers are owed thousands of dollars in severance, Harris said some might not even have enough qualifying hours to receive employment insurance, as the distribution centre went through multiple layoffs and recalls over the past year. Ursel said employees, along with nearly 1,900 other unsecured creditors, will find out if there's money left over after Hudson's Bay sells off as many of its assets as possible and makes priority payments to secured creditors — Bank of America, Pathlight Capital, Restore Capital and Cadillac Fairview. 'It's a long-standing feature that employees have been treated at the bottom of the list of creditors,' she said, despite recent federal efforts to streamline WEPP following Sears Canada layoffs. Hudson's Bay will also seek court approval next Tuesday for the sale of its intellectual property — including its logo, name, and iconic multicoloured stripes motif — to Canadian Tire in a $30 million transaction. Hudson's Bay said its board of directors, after careful consideration and consultation, determined that the bid submitted by Canadian Tire was 'the most favourable' among the 13 offers it received for its intellectual property. The Star first reported last Friday that the department store chain had signed a deal with Weihong Liu , a B.C. shopping mall owner, to reassign 28 store leases in Ontario, Alberta, and British Columbia. The reassignment of leases is conditional on consent from the landlords or approval by the court.
