Hudson’s Bay Company has filed for the Canadian version of bankruptcy, the Companies’ Creditors Arrangement Act (CCAA), following an order for creditor protection from the Ontario Superior Court of Justice. The retailer, which operates 80 namesake stores and ecommerce site TheBay.com, is exploring strategic alternatives as it faces a volatile economic landscape, with both tariffs on U.S. exports and retaliatory tariffs imposed by Canada on imports from its southern neighbor.
The CCAA protection includes an initial order providing a stay of proceedings in favor of Hudson’s Bay for 10 days, subject to extension if the court deems it appropriate. These bankruptcy proceedings don’t affect U.S.-Saks Global, which operates as a standalone entity distinct from Hudson’s Bay. However, the Canadian retailer does operate three Saks Fifth Avenue and 13 Saks Off 5th stores in Canada, which will continue to operate.
CEO Calls Bankruptcy a ‘Necessary Step’ to Strengthen Retailer’s Foundation
“Hudson’s Bay has been a vital retailer to Canadians for generations, and this decision was made with the best interests of our customers, associates and partners in mind,” said Liz Rodbell, President and CEO of Hudson’s Bay in a statement. “While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape, despite the sector-wide challenges that have forced other retailers to exit the market.
“Earlier this year, we worked with potential investors to refinance a portion of our credit facilities to improve our liquidity and support our business plan,” Rodbell added. “However, the threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions.”
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The Ontario court has appointed Alvarez & Marsal Canada as the monitor to oversee the CCAA proceedings. Restore Capital, an affiliate of Hilco Global, together with other lenders, has agreed to provide Hudson’s Bay with interim debtor-in-possession financing, approving a $16 million (Canadian) advance on March 7, 2025.
