If Hudson’s Bay Company will have to undergo full liquidation or can keep some stores at flood while restructuring: the indebted retailer has received another extension of an ontarium judge that will carry the decision at the end of the week.
Ashley Taylor, a lawyer from Hudson’s Bay, was directed on Wednesday a room of the Toronto court to request an extension on the formal approval of the liquidation plan until Friday, saying that the company was still involved with the interested parties and had “good and constructive discussions.”
The oldest company in Canada officially requested the protection of creditors earlier this month, admitting that I was fighting with financial difficulties. Taylor said at that time that the retailer hoped to restructure liquidating half of his stores and monetizing some of the leases he has in areas of main pedestrian traffic.
However, they could not ensure the funds of the lenders who should finance that restructuring, leaving the company fighting and facing a complete liquidation.
More than 9,000 workers will lose their jobs if the company liquidates all its 80 stores, offers online and the three Saks Fifth Avenue and 13 Saks of 5th Stores that Hudson’s Bay operates in Canada under a license agreement.
The deeply indebted retailer must almost $ 1 billion to the creditors.
On March 14 he described in a press release that a liquidation process of the store per store would begin after the approval of the Court, and that it could take up to 12 weeks. The court was originally scheduled to reveal its decision on Tuesday.
Taylor declared in Wednesday’s procedures that the company had enough liquidity to maintain operations until Friday, but added that they may be ready to approve a plan as early as Thursday.
During the liquidation process, Hudson Bay stores and Sask Avenue and Saks associated stores will remain open. Customers too, for limited time, can still buy products at Thebay.com. All sales will be final.
Hudson’s Bay Company is rooted in Canadian history, founded in 1670 by skins merchants, the company, in its original form, once it was a wide strip of northern Canada around Hudson’s Bay. In its modern form, its department stores were once bustling trade sites, organizing innumerable brands, along with its own clothing and products.
