Latest news with #PeterOsborne
Globe and Mail
6 days ago
- Business
- Globe and Mail
Hudson's Bay employees who lost jobs can apply for federal support, court rules
The Ontario Superior Court has granted approval for thousands of Hudson's Bay Co. employees who have lost their jobs to seek support under the federal government's Wage Earner Protection Program. The court decision on Tuesday triggers an entitlement to federal benefits for the retailer's former staff. More than 8,300 Bay employees have now been terminated without severance pay. The court hearing occurred just two days after Canada's oldest retailer completed its liquidation sales, closing its doors for the final time over the weekend. 'That's a milestone, albeit an unhappy one,' Ontario Superior Court Justice Peter Osborne said during Tuesday's hearing. While discussing the end of the Bay's liquidation, he remarked, 'The end of an era.' Lawyers appointed to represent the Hudson's Bay employees are now in discussions with Service Canada to develop a timeline for employees to access those federal benefits. 'We know they want it as soon as possible,' Susan Ursel of Ursel Phillips Fellows Hopkinson LLP said at the hearing. Also on Tuesday, the court approved a motion from RioCan Real Estate Investment Trust to place a joint venture it co-owns with Hudson's Bay into receivership. The joint venture gives RioCan a stake in 12 properties where Bay stores were located, including buildings in downtown Montreal, Vancouver, Calgary and Ottawa, and locations in high-profile malls such as Yorkdale and Scarborough Town Centre in Toronto. FTI Consulting Canada Inc. will act as receiver for the companies that fall under the joint venture. A third matter before the court on Tuesday was an application to approve Canadian Tire Corp.'s $30-million deal to acquire Hudson's Bay's intellectual property. That approval is needed to transfer ownership of a trove of the historic retailer's brand names, logos, and stripe design dating back to the point blankets used in the fur trade in the 18th century. Justice Osborne stood down that matter on Tuesday, saying that he wanted to consider some specific matters related to the deal. In particular, he questioned lawyers for Hudson's Bay about the inclusion of the trademark for the company's 1670 Royal Charter. The charter itself is part of a separate auction of the Hudson's Bay art and artifacts collection, which has yet to occur. The process for that auction is still in development. It is important that the deal does not allow Canadian Tire to prevent others from calling the document 'the royal charter,' or advertising it as such, Justice Osborne said during Tuesday's hearing. Ashley Taylor, a lawyer with Stikeman Elliott LLP representing Hudson's Bay, told the court on Tuesday that there was no opposition to the Canadian Tire deal, which was reached after 'a robust' sales process. Reflect Advisors LLC, the financial adviser handling that process, initially sent out materials related to the sale to 407 parties considered potential bidders, and received a total of 17 bids. Hudson's Bay had been seeking a going-concern transaction to keep alive the operations of at least some of the stores. The company pitched a plan to potential buyers or investors, proposing a turnaround of six Bay stores that had initially been left out of liquidation, as well as the e-commerce operations, according to a confidential memorandum prepared by Hudson's Bay in March, a copy of which was obtained by The Globe and Mail. That plan would have required $82-million in investment in the first year, according to the document. No such buyer or investor emerged.
Yahoo
13-05-2025
- Business
- Yahoo
Hudson Bay gets court approval to extend creditor protection to July 31
An Ontario court has extended an order that protects Hudson's Bay Co. ULC from its creditors until July 31, giving Canada's oldest department store more time to pay back what it owes. 'The extension to the end of July is appropriate and will certainly be necessary given the steps that remain,' said Judge Peter Osborne, who has been hearing the case at the Ontario Superior Court of Justice in Toronto since March 7. The 355-year-old company first went to court on March 7 to seek protection under the Companies' Creditors Arrangement Act (CCAA). The application was granted by the court that same day, and the stay order was eventually extended till May 15. HBC has been trying to raise money by liquidating its stores, auctioning its artifacts, monetizing its leases and selling its intellectual property (IP) to pay back about $1 billion to its creditors since March. The deadline to bid for the company and its IP ended April 30, and bids for leases had to be made by May 1. HBC received bids from 17 parties for either the company's IP, such as its brand name, or its leases. The company hasn't said who made the bids, but they are currently being reviewed. Deals have to seek court approval by May 30, according to court documents. The extension of the stay period 'is necessary and appropriate' to provide (HBC) 'the ability to complete the liquidation process, lease monetization process and SISP process, to maximize value for the benefit of the applicants and their stakeholders,' a court document filed by HBC's lawyers on May 7 said. Urbana Corp., a Toronto-based investment firm with about $500-million worth of assets, in April said it had placed a bid to purchase HBC's brand name and the Royal Charter, a historical document that gave the company exclusive trading rights over a portion of Canada in 1670. Media reports also suggested Canadian Tire Corp. Ltd. and a Vancouver-based billionaire are potential bidders. The court also approved HBC's request to pay back about $165 million to some of its senior lenders. 'I think that those distributions should be made,' Osborne said. 'They're clearly, obviously sought by those lenders and, in my view, they're beneficial to the estate as well, given the interest that continues to accrue on these not insignificant amounts and that will be reduced by these paydowns.' HBC's lawyer, Ashley Taylor, said he expects the company to return to court in about two weeks' time for the approval of 'one or more transactions.' The company's representatives are having discussions with various parties, including government officials, about the art collection it is trying to sell. Some groups have expressed concerns about the auction since HBC possesses artifacts that represent important milestones in Canadian history, including the Royal Charter. Hudson's Bay has received 'several' bids, but none from insiders, court documents show Howard Levitt: Stiffing employees is a blight on Hudson's Bay legacy Taylor said a large number of parties were given access to the list of artifacts in order to 'see and inspect' them. He also said many of the artifacts had already been donated to the Museum of Manitoba, 'particularly the more cultural, the significant and sensitive artifacts.' • Email: nkarim@
Global News
13-05-2025
- Business
- Global News
Hudson's Bay creditor protection extended until July 31
An Ontario court has extended Hudson's Bay's reprieve from the hundreds of businesses it owes money until the end of July. Judge Peter Osborne granted Canada's oldest company permission to stretch the period of time it is protected from its creditors to July 31 rather than ending May 15. Hudson's Bay lawyer Ashley Taylor argued the extension is necessary to the ongoing process of finding buyers for the business and its assets, as well as takers for its leases. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy He also used the court appearance to ask for permission to repay as much as $165 million to Hudson's Bay's senior lenders because the department store chain's liquidation sales have generated money beyond its operating needs. 1:50 Who are the players in the bidding war for Hudson's Bay assets? Because Osborne approved Taylor's request, the first of that money, about $46 million, will make its way to Restore Capital LLC around May 23 and $24.6 million will be sent to Bank of America. Story continues below advertisement Hudson's Bay filed for creditor protection in March, citing difficulty paying its mounting bills and has been liquidating all of its stores.
The Independent
21-03-2025
- Business
- The Independent
Canada's oldest company to liquidate all but 6 stores starting Monday
An Ontario court on Friday gave Hudson's Bay, Canada's oldest company, permission to start liquidating all but six of its stores on Monday. The approval from Ontario Superior Court Judge Peter Osborne allows the retailer, which dates back to 1670, to begin selling off inventory at most of its 80 Hudson's Bay stores, three Saks Fifth Avenue locations and 13 Saks Off 5th shops in Canada. 'This is the art of the possible and we are where we are today. In my view, there is no other alternative,' Judge Osborne said. The Canadian retail icon retailer was founded as a trading firm for furs and other goods. The company became part of Canada's social fabric, and was famous for its trademark product: a thick, wool blanket that has warded off frigid Canadian winters for hundreds of years. It is part of the national lore of rugged 'voyageurs' exploring the vast landscape while fighting and trading with Indigenous people. The six stores being saved from the liquidation sale include the flagship on Yonge Street in Toronto, as well as a store in the city's Yorkdale mall and another farther north in Hillcrest Mall in Richmond Hill, Ontario The remaining three span Montreal, the Carrefour Laval mall and Point-Claire, Quebec. The company didn't say how deep discounts will be during the liquidation running until June 15. It will vacate all liquidating stores by June 30. The move could save some of the 9,364 jobs that would have been lost had the company moved to liquidate all of its stores, which was the plan until recent sales exceeded expectations, allowing for it to keep six alive. 'If a solution can be found, there is an opportunity to pull additional stores out of the liquidation, but if a restructuring solution is not found very quickly, (the six) will be added to the liquidation sale,' Hudson's Bay lawyer Ashley Taylor said in court Friday. The ruling marks a glimmer of hope for the company, which filed for creditor protection on March 7. The request showed the company was facing significant financial challenges and was desperately in need of cash to continue making even basic payments that sustain the business. While it suffered from reduced consumer spending, Canada-U.S. trade tensions and a post-pandemic slide in downtown store traffic, it deferred payments to landlords and suppliers and eventually had to resort to seeking financing, which pushed it toward liquidation. Six stores are now able to be saved because the looming liquidation triggered a flurry of sales from customers looking to snap up Hudson's Bay's famed stripes products and other home goods and apparel. Taylor said Friday the company will continue to 'work hard' to find a 'more long-term solution' for its financial woes, but warned the window to achieve this 'remains very short.' While the company carries out the work, it will start a sales process for assets like its leases and Canadians will see deals at stores set to be gutted. All sales will be final at the liquidating stores, Hudson's Bay says.
Yahoo
21-03-2025
- Business
- Yahoo
Canada's oldest company to liquidate all but 6 stores starting Monday
TORONTO (AP) — An Ontario court on Friday gave Hudson's Bay, Canada's oldest company, permission to start liquidating all but six of its stores on Monday. The approval from Ontario Superior Court judge Peter Osborne allows the retailer, which dates back to 1670, to begin selling off inventory at most of its 80 Hudson's Bay stores, three Saks Fifth Avenue locations and 13 Saks Off 5th shops in Canada. The Canadian retail icon retailer was founded as a trading firm for furs and other goods. The company became part of Canada's social fabric, and was famous for its trademark product: a thick, wool blanket that has warded off frigid Canadian winters for hundreds of years. It is part of the national lore of rugged 'voyageurs' exploring the vast landscape while fighting and trading with Indigenous people. 'This is the art of the possible and we are where we are today. In my view, there is no other alternative,' judge Osborne said. The six stores being saved from the liquidation sale include the flagship on Yonge Street in Toronto, as well as a store in the city's Yorkdale mall and another farther north in Hillcrest Mall in Richmond Hill, Ontario The remaining three span Montreal, the Carrefour Laval mall and Point-Claire, Quebec. The company didn't say how deep discounts will be during the liquidation running until June 15. It will vacate all liquidating stores by June 30. The move could save some of the 9,364 jobs that would have been lost had the company moved to liquidate all of its stores, which was the plan until recent sales exceeded expectations, allowing for it to keep six alive. 'If a solution can be found, there is an opportunity to pull additional stores out of the liquidation, but if a restructuring solution is not found very quickly, (the six) will be added to the liquidation sale,' Hudson's Bay lawyer Ashley Taylor said in court Friday. The ruling marks a glimmer of hope for the company, which filed for creditor protection on March 7. The request showed the company was facing significant financial challenges and was desperately in need of cash to continue making even basic payments that sustain the business. While it suffered from reduced consumer spending, Canada-U.S. trade tensions and a post-pandemic slide in downtown store traffic, it deferred payments to landlords and suppliers and eventually had to resort to seeking financing, which pushed it toward liquidation. Six stores are now able to be saved because the looming liquidation triggered a flurry of sales from customers looking to snap up Hudson's Bay's famed stripes products and other home goods and apparel. Taylor said Friday the company will continue to 'work hard' to find a 'more long-term solution' for its financial woes, but warned the window to achieve this 'remains very short.' While the company carries out the work, it will start a sales process for assets like its leases and Canadians will see deals at stores set to be gutted. All sales will be final at the liquidating stores, Hudson's Bay says. Sign in to access your portfolio
