The death of death is playing for the oldest company in Canada.
Hudson’s Bay announced Friday night that, unless he finds a more viable path, he will begin to liquidate his entire business as soon as next week, putting more than 9,000 jobs at risk.
The department store that dates back to 1670 and now covers 80 stores said that it has been forced to complete liquidation because the “exhaustive” efforts have not presented the financing you need to keep alive at least part of its empire alive.
A closure of the entire business would mean job losses for 9,364 employees that the company has in Canada in its Hudson’s Bay stores, as well as three Saks Fifth Avenue stores and 13 Saks of the fifth location that it owns through a license agreement.
Although the situation looks gloomy, the company is maintaining the hope of a Hail Mary. He said that he is still optimistic that capital can increase and find a solution with the key interested parties, particularly its owner members, to avoid a complete closure.
“Our team has worked incredibly hard to identify a viable path forward, and our resolution is strengthened by the overwhelming support of customers and associates that have shared sincere stories about Hudson’s Bay and what our stores have meant for them, their families and their communities in generations,” said Hudson’s President and CEO of Hudson’s Bay, Liz Rilbell.
“These powerful experiences remind us why we must continue looking for all possible opportunities to ensure the necessary support of key owners and other interested parties to save the bay.”
The company’s help request occurs approximately one week after he exposed his financial struggles in a request for the protection of creditors he made with the Higher Court of Justice of Ontario.
In his application, Hudson’s Bay said he faced financial struggles due to the expense of moderate consumers, commercial tensions between the United States and Canada and the falls after the pandemic in the center’s store traffic.
The presentations show that the company owes $ 950 to 26 pages of quoted creditors: owners, suppliers and other partners, including the heavyweights of Ralph Lauren, Chanel, Columbia Sportswear, Diesel and Estee Lauder.
Jennifer Bewley, financial director of the Hudson’s Bay parent company, said in a judicial presentation held on March 7 that the business had to differ certain payments to such companies for many months because I was having so many problems paying payments to owners, service providers and suppliers.
The situation was so severe that he said that an owner “illegally locked up” Hudson’s bay out of a store located in Sydney, NS, and a team of sheriffs tried to take the merchandise from another place that runs in Sherway Gardens, a suburb of Toronto Mall.
The presentation of March 7 was not destined to be the precursor of the closure of the business because Hudson’s bay intended to keep the company alive and most of its extensive footprint in operation possible.
A week later, the company is in a much more terrible way. He said that the liquidation of the store per store is necessary because it has only assured the financing of the debtor in “limited” possession, a form of the capital companies can look for restructuring purposes after making creditors protection presentations.
