Department store chain Hudson’s Bay says it will begin liquidating its entire business as soon as next week unless it finds a more viable path forward.
Canada’s oldest company, which dates back to 1670, has 80 stores and says it was forced toward the full liquidation because exhaustive efforts haven’t turned up the financing it needs to restructure.
Hudson’s Bay says it remains hopeful that it can drum up capital and find a solution with stakeholders, including its landlord partners, to avoid a full shutdown.
A closure of the entire business would mean job losses for 9,364 employees the company has in Canada across its Hudson’s Bay stores, as well as three Saks Fifth Avenue stores and 13 Saks Off 5th locations it owns through a licensing agreement.
Officials say all stores will remain open to serve customers and, for a limited time, online at TheBay.com.
“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,” said Hudson’s Bay president Liz Rodbel.
The liquidation news comes roughly a week after the beleaguered company sought creditor protection from the Ontario Superior Court of Justice.
In its application, Hudson’s Bay said it was facing “significant” pressures because of subdued consumer spending, trade tensions between the U.S. and Canada, and post-pandemic drops in downtown store traffic.
