Hudson’s Bay gets court extension, liquidation decision expected by March 21

Hudson’s Bay has been granted another extension by the Ontario Superior Court as it faces the possibility of full liquidation. A final decision is now expected by Friday, March 21, which could determine the future of more than 9,000 employees across Canada.

What’s happening with Hudson’s Bay?

Canada’s oldest retailer officially filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) earlier this month. Facing nearly $1 billion in debt, Hudson’s Bay was hoping to avoid a total shutdown by restructuring—closing half of its stores and selling off prime retail leases to raise capital.

However, the company was unable to secure the financing needed to move forward with that plan, leaving liquidation as the most likely outcome.

CBC News reports that during a court appearance today, Hudson’s Bay lawyer Ashley Taylor confirmed that the company is still in “good, constructive discussions” with stakeholders, but needs more time before a final decision is made.

If the court approves the liquidation plan later this week, Hudson’s Bay will begin closing all 80 of its department stores, as well as all Saks locations. The entire process could take up to 12 weeks.

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