Latest news with #ReflectAdvisors
Globe and Mail
3 days ago
- Business
- Globe and Mail
Hudson's Bay seeks court approval for $30-million Canadian Tire deal
Hudson's Bay is expected to return to court Tuesday morning to seek approval for a $30-million deal it signed with Canadian Tire Corp. Ltd. CTC-A-T If the deal gets the OK from Ontario's Superior Court, Canadian Tire will be able to buy the rights to Hudson's Bay's intellectual property, which includes its name, its coat of arms and its iconic stripes. Court documents have also shown the deal includes the Bay's Distinctly Home brand, its Hudson North apparel line and trademarks like 'Bay Days' and the Zellers catchphrase 'lowest price is the law.' Inside the final days of Hudson's Bay Hudson's Bay demise leaves large swaths of empty retail space in its wake The move to get approval for the Canadian Tire deal comes months after Canada's oldest company filed for creditor protection and days after it closed all 96 of the stores it ran under its Bay and Saks banners on Sunday. Hudson's Bay has said the sale and closures were necessary because the 355-year-old company was not able to attract an investor to keep some semblance of the current business alive. Canadian Tire wound up being the winner of the Bay's trademarks after the company and its advisers invited 407 people and firms to bid on the intellectual property and other assets. Adam Zalev, co-founder of Bay financial adviser Reflect Advisors, said in court documents that 17 bids were received. Thirteen were for intellectual property, but Canadian Tire's was 'superior to all other bids considered,' he said. Hudson's Bay is expected to ask for a document describing why it chose Canadian Tire to be sealed because it contains commercially sensitive information, including the amounts offered by the next highest bidders. On top of taking over the trademarks, Canadian Tire will also assume a contract Hudson's Bay has with Pendleton Woolen Mills, an Oregon-based blanket and clothing maker. After Hudson's Bay and Pendleton disagreed about the use of some multistripe and 'point' motifs in 2009, they reached a settlement that gave Pendleton a licence for some Bay trademarks. Aside from being asked to approve the Canadian Tire deal, a court is also expected to hear two other Bay motions Tuesday. The first is from RioCan Real Estate Investment Trust REI-UN-T, which has a joint venture with the Bay. The venture has leases for 12 properties the department store used, but RioCan wants to put the partnership into receivership to protect its stakeholders and maximize the value it can recover. Receivership is a process allowing a third party to take control of a company's assets, oversee their liquidation and repay creditors. The court will also be asked to recognize the Bay as the former employer of all the department store's workers who have been terminated. The declaration will allow the Bay's 9,364 staff, including more than 8,300 who have already lost their jobs, to recoup money they may be owed from the retailer under the Wage Earner Protection Program Act. People who qualify under the federal program can earn up to $8,844.22 this year.
CTV News
3 days ago
- Business
- CTV News
Hudson's Bay heads back to court to seek approval for Canadian Tire deal
This composite image shows signage of Canadian Tire, left, and the Bay. THE CANADIAN PRESS/Sean Kilpatrick, Pawel Dwulit TORONTO — Hudson's Bay is expected to return to court Tuesday morning to seek approval for a $30-million deal it signed with Canadian Tire Corp. Ltd. If the deal gets the OK from Ontario's Superior Court, Canadian Tire will be able to buy the rights to Hudson's Bay's intellectual property, which includes its name, its coat of arms and its iconic stripes. Court documents have also shown the deal includes the Bay's Distinctly Home brand, its Hudson North apparel line and trademarks like 'Bay Days' and the Zellers catchphrase 'lowest price is the law.' The move to get approval for the Canadian Tire deal comes months after Canada's oldest company filed for creditor protection and days after it closed all 96 of the stores it ran under its Bay and Saks banners on Sunday. Hudson's Bay has said the sale and closures were necessary because the 355-year-old company was not able to attract an investor to keep some semblance of the current business alive. Canadian Tire wound up being the winner of the Bay's trademarks after the company and its advisers invited 407 people and firms to bid on the intellectual property and other assets. Adam Zalev, co-founder of Bay financial adviser Reflect Advisors, said in court documents that 17 bids were received. Thirteen were for intellectual property, but Canadian Tire's was 'superior to all other bids considered,' he said. Hudson's Bay is expected to ask for a document describing why it chose Canadian Tire to be sealed because it contains commercially sensitive information, including the amounts offered by the next highest bidders. On top of taking over the trademarks, Canadian Tire will also assume a contract Hudson's Bay has with Pendleton Woolen Mills, an Oregon-based blanket and clothing maker. After Hudson's Bay and Pendleton disagreed about the use of some multistripe and 'point' motifs in 2009, they reached a settlement that gave Pendleton a license for some Bay trademarks. Aside from being asked to approve the Canadian Tire deal, a court is also expected to hear two other Bay motions Tuesday. The first is from RioCan Real Estate Investment Trust, which has a joint venture with the Bay. The venture has leases for 12 properties the department store used, but RioCan wants to put the partnership into receivership to protect its stakeholders and maximize the value it can recover. Receivership is a process allowing a third-party to take control of a company's assets, oversee their liquidation and repay creditors. The court will also be asked to recognize the Bay as the former employer of all the department store's workers who have been terminated. The declaration will allow the Bay's 9,364 staff, including more than 8,300 who have already lost their jobs, to recoup money they may be owed from the retailer under the Wage Earner Protection Program Act. People who qualify under the federal program can earn up to $8,844.22 this year. This report by The Canadian Press was first published June 3, 2025. Tara Deschamps, The Canadian Press
Winnipeg Free Press
30-04-2025
- Business
- Winnipeg Free Press
In the news today: Deadlines near for Hudson's Bay and its leases
Here is a roundup of stories from The Canadian Press designed to bring you up to speed… As deadlines near for Hudson's Bay and its leases, there are glimmers of hope Two deadlines that will determine the fate of Hudson's Bay are coming this week, but hope may already be on the horizon. Anyone interested in buying Canada's oldest company or assets like the rights to its iconic Stripes brand has until today at 5 p.m. to submit binding proposals. Hudson's Bay and those overseeing the sale have not said whether any suitors have made a formal pitch for the business or its non-lease assets, but the company's financial adviser Reflect Advisors has said there has been 'a high level of interest.' Separate from that sales process is another for properties held by the department store chain or its sister Saks businesses. Binding bids for the leases are due Thursday. It's tax deadline day today, April 30 For most Canadians, today is the last day to file your taxes, which is especially important if you need to avoid late penalties and interest on amounts owing. The deadline for self-employed workers to file to the Canada Revenue Agency is June 16, though interest on any outstanding balances begins accruing after today. Late tax filers could see a five per cent penalty on their balance owing and an additional one per cent for each full month that they delay filing after the due date, to a maximum of 12 months. Tax experts say it's still important to file your taxes on time even if you can't pay the amount owing in order to avoid an even higher bill from late-filing fees. Here's what else we're watching… It has been 50 years since the fall of Saigon Seventy-year-old Tan Hoang vowed he would never return to Vietnam after fleeing the country with his family on a makeshift wooden boat. He says officers in Vietnam remind him of the communist soldiers who once stormed and captured Saigon. The fall of Saigon 50 years ago today marked the end of the two-decade-long Vietnam War. Hoang said he plans to gather this afternoon with other Vietnamese Canadians at an Edmonton community centre for a sombre event marking the anniversary. Hoang and the others are a part of a large exodus of people from Vietnam referred to as the 'boat people.' During Elections Get campaign news, insight, analysis and commentary delivered to your inbox during Canada's 2025 election. Ontario eyeing teachers' college change: documents Documents obtained by The Canadian Press suggest the Ontario government is considering shortening the length of teachers' college in order to address a worsening shortage of educators. A freedom-of-information request on teacher supply and demand came back with research the Ministry of Education conducted last year on the supply issue and the length of initial teacher education programs. Highlighted in the summary of the document on teachers' college are findings that longer programs do not make better teachers. Ontario teachers' college programs are typically two years, divided into four semesters, but that has not always been the case. Telus tops watchdog's tally of telecom complaints A new report says Telus is now the most complained-about telecom service provider in Canada. The mid-year report by Canada's telecom complaints watchdog says it handled almost 12,000 gripes from customers between August 2024 and this January. That's up almost 12 per cent from the same reporting period a year earlier, as customers complained most about their wireless services and internet. The watchdog says it's the first time since it was established in 2007 that Telus has topped the ranking, surpassing Rogers, which has held the title for two years. This report by The Canadian Press was first published April 30, 2025.
Business of Fashion
25-04-2025
- Business
- Business of Fashion
North America's Oldest Firm Meets Its End. Some Argue Its Fate Was Avoidable
Hudson's Bay Co. ULC, a company that's so old it once played a central role for goods traders in Britain's North American colonies, is being stripped for parts. The retailer, currently under bankruptcy protection in Canada, had devised a plan to rescue six of its 96 stores from liquidation, including its flagship location in one of the biggest shopping hot spots in downtown Toronto. But that plan has run aground and those locations are now being wound up too, and the company's 17th-century artefacts are being auctioned off. It's a somber end for thousands of employees and a company that was a dominant force in the Canadian retail landscape for decades. The company was doomed after the Covid-19 pandemic hit, according to one person with detailed knowledge of HBC's operations, who said Canada's strict stay-at-home orders meant stores closed for longer than expected and consumer behaviour shifted. But several other people with knowledge of the matter say the retailer erred by waiting too long to restructure. As recently as January, at least three private credit firms were ready to provide financing, according to the person close to HBC, but they changed their minds after US President Donald Trump's tariff policy became clearer. HBC then engaged Reflect Advisors in February to help it restructure after those attempts to raise money failed. Reflect's consultants quickly realised the company needed an emergency cash injection, the people said. Five days after being hired, it began asking creditors for more capital. Days after HBC filed for creditor protection on March 7, one creditor extended 16 million Canadian dollars ($11.5 million) to cover operational expenses while the company and its advisers waited for a private credit lender to finalise a larger loan that might have saved 40 stores, the person close to HBC said. But that firm backed out at the last minute, the person said. The failure to secure more capital sent HBC on a path of liquidating its stores, including the Saks Fifth Avenue and Saks Off 5th stores it operates in Canada. Typically, companies that apply for creditor protection develop restructuring plans before considering that drastic step. 'The uniqueness is the speed with which the bankruptcy filing has occurred and how quickly discussions started about liquidation,' said Andrew Hatnay, a partner at Koskie Minsky LLP who represents HBC employees. HBC retains the right to remove stores from the liquidation process if a buyer emerges, Reflect Advisors stated in an affidavit. 'Our team has worked incredibly hard to identify a viable path forward, and our resolve is strengthened by the overwhelming support from customers and associates who have shared heartfelt stories about Hudson's Bay and what our stores have meant to them, their families, and their communities across the generations,' HBC chief executive officer Liz Rodbell said in a statement made prior to the court proceedings. Culture Trouble Founded in 1670, Hudson's Bay evolved from a colonial fur trading business into the country's largest department store chain, and is North America's longest continuously operating business. Like many traditional retailers, it struggled in the 2000s and 2010s to keep pace with the rise of e-commerce and changing consumer habits. These troubles were exacerbated after HBC went private in 2020, a transaction that concluded a months-long fight that required Richard Baker, HBC's executive chairman, to sweeten his offer twice. Luck was not on the company's side — days after the deal closed, the pandemic forced all stores to shutter. Then came a series of strategic missteps, according to other people familiar with its operations. A lack of coherent long-term vision and a perceived unwillingness to invest within Canada left the company in a constant state of flux, according to these people. Former employees described a culture in which some executives failed to take seriously the concerns of frontline employees and managers. In 2021, HBC split its e-commerce and store operations, mirroring a strategy its parent company used for its US operations. HBC spent 130 million Canadian dollars and hired more than 500 employees, but the move didn't yield the expected returns. 'Revenue from digital channels failed to offset the decline in brick-and-mortar sales, and debt levels increased without a proportional improvement in profitability,' HBC's chief financial officer stated in an affidavit. The initiative also diverted resources from its physical stores. When Canadian retail didn't bounce back as quickly as expected from the first year of the pandemic, HBC had to sell surplus inventory at significant losses, the person with detailed knowledge of the retailer's operations said. Adding to the turmoil were leadership controversies. Baker told Canada's Globe and Mail newspaper in March 2023 that the department store chain comprised 'a teeny weeny, tiny bit' of the parent company's overall value, which was driven by real estate and digital ventures. Employees aired their concerns about the quote in a town hall, but Baker didn't directly answer questions about it or try to alleviate concerns, former employees said. Then Baker announced in July 2024 that he'd struck a deal to acquire Neiman Marcus Group for $2.7 billion. This move brought together luxury brands such as Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th under a new entity, Saks Global. The fact that he raised billions to invest in the US while HBC's Canadian stores were left with broken escalators caused resentment, the people said. The resentment wasn't entirely founded, said the person close to HBC's operations. The US and Canadian businesses were distinct, and no money was sent to the US from Canada after the company went private, the person said. Rather, $350 million was sent to the Canadian arm from its US operations under a credit facility, the person said. The injection wasn't enough. In December, on assuming ownership of Neiman Marcus, Baker formally separated Saks from HBC. Publicly, this move was framed as consolidating luxury retail brands under one umbrella, allowing Hudson's Bay to focus on its core operations in Canada. HBC's troubles have affected big Canadian real estate companies like Cadillac Fairview, a subsidiary of the Ontario Teachers' Pension Plan. Cadillac at one point lent 200 million Canadian dollars to HBC to support the retailer's operations and maintain its role as an anchor tenant in several of its shopping centres — with one condition being that no money was sent from its Canadian operations to the US, according to the person close to HBC. The retailer repaid 24 million Canadian dollars after it bought Neiman Marcus. 'I think they're just a really supportive landlord. And they were trying to help HBC survive,' Ontario Teachers CEO Jo Taylor said in an interview. 'The view taken, which I could understand completely, was its survival would've been a better outcome for Cadillac' over the long term than had HBC failed, 'as it has done.' 'We are disappointed for them.' By Paula Sambo and Layan Odeh
Yahoo
02-04-2025
- Business
- Yahoo
Hudson's Bay Announces Commencement of Court-Approved Sale and Investment Solicitation Process and Lease Monetization Process
TORONTO, April 02, 2025--(BUSINESS WIRE)--Hudson's Bay Company ULC (Hudson's Bay or the Company), the Canadian entity comprising the retailer Hudson's Bay and is announcing the commencement of: (i) a sale and investment solicitation process (the SISP), which was approved pursuant to an order granted by the Ontario Superior Court of Justice (the Court); and (ii) the commencement of a Court-approved lease monetization process (the Lease Monetization Process). The SISP is being conducted by Reflect Advisors, LLC, the Court-approved financial advisor to the Company (the Financial Advisor) under the supervision of Alvarez & Marsal Canada Inc., as Court-appointed monitor of the Company (the Monitor). The SISP is intended to solicit interest in, and opportunities for: (a) one or more sales or partial sales of all, substantially all, or certain portions of the property, assets, and undertakings of the Company and certain entities related to the Company on a liquidation or going concern basis; and/or (b) an investment in, or refinancing of all or a portion of the business of the Company and certain entities related to the Company. The SISP sets forth the manner in which interested parties will be provided with an opportunity to participate in the process and submit offers. Among other things, the SISP provides that interested parties will receive a process summary describing the opportunity, and access to a virtual data-room and a confidential information memorandum on execution of a non-disclosure agreement acceptable to the Monitor and the Company. The SISP process summary also sets out the applicable deadlines for the submission of offers. The deadline for qualified interested parties to submit binding proposals in the SISP is April 30, 2025, at 5:00 p.m. EDT. Interested parties should refer to the SISP for information pertaining to other important deadlines and terms thereunder. Those who are interested in participating in the SISP can contact the Financial Advisor or the Monitor to receive additional information at: Reflect Advisors, LLC Alvarez & Marsal Canada Inc. 4705 Benton Smith Road Royal Bank Plaza, South Tower Nashville, TN 37215 200 Bay Street, Suite 29000 P.O. Box 22 Attention: Adam Zalev / Darcy Eveleigh Toronto, ON M5J 2J1 Email: azalev@ / develeigh@ Attention: Alan Hutchens / Greg Karpel Email: ahutchens@ / gkarpel@ Separately, the Lease Monetization Process is intended to seek proposals for the sale, disposition, assignment, surrender (if accepted by the applicable landlord), or other transaction forms, for the leasehold interests and all related rights and obligations held by the Company and certain entities related to the Company. The Lease Monetization Process is being conducted by Oberfeld Snowcap Inc., the Court-approved consultant to the Company (the Consultant), under the supervision of the Monitor. The Lease Monetization Process sets forth the manner in which interested parties will be provided with an opportunity to participate in the Lease Monetization Process and submit offers. Among other things, the Lease Monetization Process provides that interested parties will receive a summary of the leases and access to a virtual data-room on execution of a non-disclosure agreement acceptable to the Monitor and the Company. The Lease Monetization Process also sets out the applicable deadlines for the submission of offers. The deadline for qualified interested parties to submit non-binding letters of intent in the Lease Monetization Process is April 15, 2025, at 5:00 p.m. EDT. Interested parties should refer to the Lease Monetization Process for information pertaining to other important deadlines and terms thereunder. Those who are interested in participating in the Lease Monetization Process can contact the Consultant or the Monitor to receive additional information at: Oberfeld Snowcap Inc. Alvarez & Marsal Canada Inc. 121 King Street West, Suite 1800 Royal Bank Plaza, South Tower Toronto, ON 3T9 200 Bay Street, Suite 29000 P.O. Box 22 Attention: Jay Freedman Toronto, ON M5J 2J1 Email: jay@ Attention: Alan Hutchens / Greg Karpel Email: ahutchens@ / gkarpel@ About Hudson's Bay Company ULC Hudson's Bay Company ULC is a Canadian entity that includes the retail company Hudson's Bay, comprising 80 stores and Through a licensing agreement, 3 Saks Fifth Avenue and 13 Saks OFF 5TH stores also operate in Canada under Hudson's Bay Company ULC. Additional Information Court filings, including the SISP, the Lease Monetization Process, as well as other information related to the Company's CCAA proceedings will be available on the Monitor's website at Information regarding the CCAA process may also be obtained by calling the Monitor's hotline at (416) 847-5157 (toll free), or by email at hudsonsbay@ Hudson's Bay will continue to provide updates regarding the CCAA proceedings as developments or circumstances may warrant. View source version on Contacts VP, Corporate Communications Sign in to access your portfolio
