On Saturday, March 8, the 91原创 Hudson's Bay store at the Willowbrook Shopping Centre opened for business as usual.
How long that state of affairs would continue was uncertain, following a Friday night announcement the chain had sought creditor protection. to "restructure its operations, streamline costs, and refocus on its core strengths"
A press release issued by Liz Rodbell, president and CEO of Hudson鈥檚 Bay, announced court proceedings under the Companies鈥� Creditors Arrangement Act (CCAA) had been filed in Ontario, allowing the stores to keep operating while a restructuring is carried out.
It said the CCCA applications came after the Canada - U.S. tariff conflict scuttled negotiations with potential investors.
"The threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions," said Rodbell.
"Ongoing trade tensions with the U.S., including the new and wide-ranging tariffs on exports to the U.S., together with retaliatory tariffs imposed by Canada on U.S. imports, have created economic uncertainty, directly impacting refinancing efforts and limiting access to the capital needed to support the business."
Rodbell's statement said the company was exploring "strategic alternatives and engaging stakeholders to explore potential solutions to preserve and strengthen its business."
"While no assurances can be provided, these discussions reflect Hudson鈥檚 Bay鈥檚 commitment to preserving jobs and community ties where possible."
Court documents indicate some stores will be shuttered, stating the company intends to "conduct an orderly liquidation with respect to certain retail stores ... in a manner that is fair and reasonable for the Applicants, landlords, and other stakeholders.
Other factors cited in the Bay release included a post-pandemic shift to work-from-home that "has created a permanent and drastic population reduction in downtown stores," and a rising costs of living, higher mortgage rates, and a weakening Canadian dollar that has strained household budgets, "leading to subdued discretionary consumer spending and broader economic challenges."
Hudson鈥檚 Bay operates 80 stores in Canada, including 15 B.C. sites, as well as three Saks Fifth Avenue and 13 Saks OFF 5TH stores. which will also continue to operate.
In its court filing, it describes itself as the oldest company in North America and "Canada鈥檚 most prominent department store ... founded in 1670 when it was granted a right of sole trade and commerce over an expansive area of land known as Rupert鈥檚 Land, which included what is today, the whole of Manitoba, most of Saskatchewan, the southern parts of Alberta and Nunavut, and the northern parts of Ontario and Quebec."
