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Miami Herald
25-04-2025
- Business
- Miami Herald
It's your last chance to shop at this bankrupt retail chain
Starting a business is hard, and it's even harder to keep it running. Only a few can achieve the title of "historic business," especially in this economy and with increasingly more challenging competition. Don't miss the move: Subscribe to TheStreet's free daily newsletter Now more than ever, decades-old empires are beginning to crumble, with renowned chains like Macy's (M) , Kohl's (KSS) , and JCPenney (JCP) closing multiple locations due to underperformance. Related: Popular retail chain to close stores and cut hundreds of jobs Hudson's Bay is Canada's oldest and largest retailer. It began as a fur trading business in the UK in 1670 and slowly transitioned into the renowned department store chain it is today, with headquarters in Canada and the U.S. Although still beloved by many, all good things come to an end, and Hudson's Bay had more than exceeded its life expectancy in the retail world, lasting over 30 decades. Image source: Bloomberg/Getty Images Hudson's Bay (HBAYF) filed for creditor protection (CCAA), which is known as Chapter 11 bankruptcy in the U.S., with the Ontario Superior Court of Justice in Canada on March 14 of this year. This led to the beginning of many liquidation sales across its 74 owned and operated stores, three licensed inside Saks Fifth Avenue, and 13 inside Saks Off 5th locations in Canada. This filing not only marked the end of a historic retail run for most Hudson's Bay stores, but also put nearly 10,000 employees at risk of losing their jobs. Related: Massive grocery chain shuts down in-house sit-down restaurants However, Hudson's Bay didn't survive for nearly 355 years to let its empire crumble that easily. Hoping to continue its legacy, the retail chain received court approval to find an investor to acquire the company by April 30, leaving only six stores free of liquidation. Hudson's Bay seems to have lost all hope of finding a restructuring solution to revive its historic business. The retail chain's financial advisor Adam Zalev said in a court affidavit that excluding the six remaining locations from liquidation was causing a negative impact and that the company was unlikely to find a buyer in time. "Given the low probability of receiving a viable bid based on the Six Store Model, the Applicants, in consultation with Reflect and the Monitor, have decided to include these six stores in the liquidation sale effective April 25, 2025," said Zalev. Although this could be the end of an era for such a historic retailer, these closures also mean liquidation sales are coming to all the remaining locations, allowing customers to shop there one last time. More Retail News: Walmart makes major store changes to answer TargetTarget recalls baby food after disturbing findingThis retailer steps up after Joann, Party City bankruptcies Beginning April 25, the remaining six stores, previously said to have been exempted from liquidation, will sell all remaining merchandise at discounted prices. No returns will be accepted, and all sales are final, even if the items were bought before the liquidation sale period began. Hudson's Bay Rewards will also be terminated, and points can no longer be redeemed online or in-store, as stated on its website. Here is a list of the remaining six stores: Hudson's Bay Flagship on Yonge Street in TorontoHudson's Bay store at Yorkdale Mall in TorontoHudson's Bay store at Hillcrest Mall in Richmond Hill, OntarioHudson's Bay store at Carrefour Laval Mall in LavalHudson's Bay store in downtown MontrealHudson's Bay store in Pointe-Claire, Quebec Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Calgary Herald
24-04-2025
- Business
- Calgary Herald
Hudson's Bay to start liquidating last six stores, signalling end of historic retailer
Article content Hudson's Bay Co. is planning to begin liquidating six of its stores that it had previously hoped to keep open, signalling the potential end of Canada's oldest department store. Article content HBC started liquidating 90 of its 96 stores last month, but it hoped to attract bids to keep its footprint alive through a 'six-store model.' But the move seems to be negatively impacting the company's ongoing efforts to raise roughly $1 billion it needs to pay back creditors, according to court documents. Article content Article content 'It is unlikely to receive a viable going concern bid based on the proposed Six Store Model,' Adam Zalev, cofounder of Reflect Advisors LLC, HBC's financial adviser, said in the document. 'The exclusion of the six stores from the liquidation sale is negatively impacting (HBC's) realization efforts.' Article content Article content Given the 'low probability of receiving a viable bid,' the company said it wants to start liquidating the remaining stores, which includes its flagship store in downtown Toronto, as well as two others in the Greater Toronto Area and three in the Greater Montreal Area. Article content HBC will still have the ability to stop liquidating these stores or any of its other stores if it receives a viable bid, Zalev said. However, any bid needs to be received by April 30, according to a court order. Article content HBC's latest proposal comes almost a month and a half after it decided to seek protection from its creditors through the Companies' Creditors Arrangement Act (CCAA). The company on March 14 said it would have to liquidate all 96 of its stores unless 'an alternative solution' emerged. Article content Article content After a series of negotiations between its lenders and landlords, HBC received a court order on March 21 that directed it to liquidate all but six of its stores. But HBC's lawyer told the Ontario court on the same day that he wanted 'to be crystal clear' that HBC did not have an agreement on which it could base a restructuring plan. Article content Article content Judge Peter Osborne, who has been hearing the motions at the Ontario Superior Court of Justice in Toronto since March 7, said the more stores 'carved out' from liquidation, the better. Article content It wants to host a separate auction to sell more than 1,700 pieces of art and more than 2,700 artifacts that 'reflect the rich heritage and cultural legacy of the company.' Among them is the Royal Charter, a document that gave the company exclusive trading rights over a portion of Canada in 1670.
