Latest news with #CompaniesCreditorsArrangementAct
CBC
27-05-2025
- Business
- CBC
Hudson's Bay to lay off more than 8,300 employees by June 1
Hudson's Bay will lay off more than 8,300 employees — about 89 per cent of its workforce — by Sunday, according to documents published Monday evening, at which point the retailer will have closed all its stores and its liquidation sale will have run its course. CBC News previously reported that the Canadian brand was expected to wind down its operating stores on June 1, and that the majority of its employees would likely be terminated by then. Some employees will be kept on staff to help sell any in-store furniture and to shut down the remaining locations. Once the company's distribution centres close on June 15, an additional 899 employees are expected to be laid off. The remaining 118 employees will help the company carry out its obligations through the Companies' Creditors Arrangement Act, the documents said.
CBC
17-03-2025
- Business
- CBC
Thunder Bay, Ont. business left in limbo after Hudson's Bay creditor protection filing
An Indigenous-led business in Thunder Bay, Ont. faces a significant financial hit after Hudson's Bay Company entered creditor protection last week. Hudson's Bay is delaying payments to nearly 2,000 secured and unsecured creditors as it struggles with nearly $1 billion in debt. Jason Thompson, owner of Superior Strategies Inc., says he is owed more than $80,000 by the 400-year-old Canadian retailer after supplying thermal printer rolls through his Warrior Office division. He was told multiple times that payment was forthcoming, but he now faces uncertainty as the company undergoes court-supervised restructuring. The financial strain has been immense for the Indigenous-owned business, which fronted $55,000 in supplier costs to fulfill the order. Thompson says he initially saw the deal as an opportunity for growth, especially given the timing of Hudson's Bay's first outreach on Sept. 30, 2023—National Day for Truth and Reconciliation. "I was assuming Hudson's Bay was doing some good things around reconciliation," he told CBC. "Being a smaller business, I [saw] this as an opportunity to grow." However, what started as a promising partnership has now turned into a financial headache. Thompson negotiated a 90-day payment term, reduced from Hudson's Bay's original request of 120 days. When payment failed to arrive at the end of January 2024, he began reaching out to the company. His inquiries were initially met with responses, including direct communication with Hudson's Bay CEO Liz Rodbell. A finance department representative assured him a payment plan was in place, with installments beginning in April. However, in the weeks leading up to March 7, when the first payment was expected, communication from Hudson's Bay went silent. Then, last week, the company announced it had filed for creditor protection under the Companies Creditors Arrangement Act (CCAA), freezing payments to suppliers while it seeks financial restructuring. The retailer, which owes millions to vendors and landlords, admitted in court filings that it has fallen behind on payments and may close up to half of its 80 stores. Under the CCAA process, companies can restructure their debts, often leaving unsecured creditors—like small businesses—receiving only a fraction of what they are owed. Some experts estimate suppliers in retail insolvencies may receive less than 20 cents on the dollar if anything at all. Rodbell explained the company's decision to file for creditor protection in a company statement. "Earlier this year, we worked with potential investors to refinance a portion of our credit facilities to improve our liquidity and support our business plan. However, the threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions," she said. In a statement to CBC, Hudson's Bay said it was a difficult but necessary decision to seek creditor protection. "As part of the CCAA process, payments to creditors including vendors are stayed at this time," wrote Tiffany Bourré, the company's vice president of corporate communications. "The company is exploring strategic alternatives and engaging stakeholders to explore potential solutions to preserve and restructure its business." During the 17th to 19th century, the Hudson's Bay Company relied heavily on Indigenous peoples for fur trading, leading to economic dependence, disruption of traditional ways of life, and the displacement of many communities. Later, the company said they are committed to reconciliation and racial equity, including a $30 million commitment over 10 years to support Indigenous communities and address the impacts of the Indian residential school system. How should the Hudson's Bay Company reinvent itself? 9 days ago Duration 9:14 Canada's oldest retailer, which operates the Hudson's Bay department stores, announced it is seeking creditor protection on Friday, but that it intends to hold onto many of its prominent locations. Retail strategist David Ian Gray said scaling down and exploring their own product lines could be options for the ailing department store chain. But now, Thompson says the experience has made him question corporate commitments to Indigenous economic reconciliation. With Indigenous vendors left in financial limbo, he wonders what that commitment truly means. "The horrors and atrocities and the trials and tribulations for us Indigenous people are well documented. Yet, this is how [they're] going to continue to proceed without even entering into any dialogue with us," said Thompson. "Hudson Bay Company's been around for such a long time and it's a big part of the history of Canada. So I'm hoping that there will be an available plan of some sort. But I really hope that the focus is on ensuring that the small companies are looked after," he said.
