Liquidation of Hudson's Bay begins at all but 6 stores
CBC
Liquidation sales are kicking off Monday morning at all but six of Hudson's Bay's locations as the company continues to search for a way to restructure.
The six stores currently omitted from the liquidation include the flagship store on Yonge Street in Toronto, as well as two others in the Greater Toronto Area and three in Quebec, including one in downtown Montreal.
Canada's oldest company operates 80 stores, as well as three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada through a licensing agreement.
The company said liquidation sales will wrap up by June 15, and that it will vacate those locations by June 30. All loyalty programs and points have been suspended, but gift cards can still be used at stores until April 6.
Online sales through TheBay.com will continue up to and including April 15.
The liquidation comes after the company filed for creditor protection earlier this month, admitting that they were struggling with financial difficulties due to a number of factors, including a drop in downtown store traffic post-pandemic, and that they had already deferred some payments to landlords.
An Ontario judge gave the company permission on Friday to begin liquidation at most of its stores. Hudson's Bay lawyer Ashley Taylor said the company was permitted to save six stores for the time being because recent sales have exceeded company expectations, paving the way for the continued operation of those stores as they pay back interim financing from a lender.
Shoppers have already been flocking to stores to snag products emblazoned with the company's iconic stripes.
The court order allows the company to remove more stores from its liquidation if it secures funding, but it also allows for the six stores currently spared to be added to the liquidation if a restructuring plan — which hasn't been established yet — isn't solidified quickly.
