Hudson’s Bay reportedly set to liquidate 6 remaining stores amid buyer despair

What’s going on at Hudson’s Bay?

A new court filing claims that Hudson’s Bay — Canada’s oldest retailer — will begin liquidating its six remaining Canadian stores on April 25.

The company’s legal team said in an affidavit that there’s a “low probability” of finding a suitable buyer for the following six locations:

• The Yonge Street location in downtown Toronto (flagship)
• The Yorkdale Mall location in Toronto
• The Hillcrest Mall location in Richmond Hill, Ontario
• The downtown Montreal location
• The Carrefour Laval location in Laval, Quebec
• The location in Pointe-Claire, Quebec

However, if a bid for the stores is received as next week’s deadline looms, Hudson’s Bay stated that it retains the right to remove the stores from the liquidation process.

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Change of heart on commission pay

In addition to liquidating its six remaining stores, Hudson’s Bay has backtracked on its decision to slash commission pay for certain staffers.

The sudden reversal follows a grievance filed by its union, Unifor, as well as extensive coverage by major media outlets, including CBC News.

State of Hudson’s Bay

Hudson’s Bay officially filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in March.

Facing nearly $1 billion in debt, the company has been trying to avoid a total shutdown by restructuring — closing half of its stores and selling off prime retail leases to raise capital.

However, it wasn’t able to secure the financing needed to move forward with that plan.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.