Retail giant closing all locations after bankruptcy talks fail
The company had been given additional time by the courts to work out a plan, but that deadline has passed.
A bankruptcy can sometimes have the drama of an HBO show. In many cases, a company enters bankruptcy with a plan that should make the process relatively simple.
The problem, is that nobody can prepare for all the things that go wrong. Sometimes a proposed lender takes a closer look at the books and realizes that the business is not what they thought it was.
Related: Giant retail store closing leaves consumers shocked
In other cases, you might get vendors who would rather see the company go out of business so they can get a piece in liquidation then see it continue as a going concern.
It can be very complicated and courts often get involved. In recent cases like David’s Bridal, the bankruptcy court judge had to decide between an offer to keep the company going and the value of liquidating.
In that case, the decision was made to sell the brand and keep it operating. It just is easily could’ve gone the other way as staying open benefited employees, and customers but many vendors lost a lot of money.
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There are times during many bankruptcies when a possible hero emerges that might be able to keep the brand afloat. Having a potential deal, however, and actually closing a deal are too very different things.
One retail chain with an extensive history, thought it was going to be able to keep a part of its retail fleet operating. Unfortunately, no deal was able to be made, and the company is shutting down six stores under its own name and one under one of the biggest names in retail that.It had hoped to save. Image source: Getty Images
Hudson's Bay has a long history
When you visit the Hudson's Bay website, you get a very stark message.
"Closing sale: Hudson's Bay stores and thebay.com are closing. Save up to 70% off. All sales are final."
The company also shares in multiple places that all sales are final and there will be no exchanges or returns.
In addition Hudson's Bay, which has entered Canada's version of bankruptcy also shared this message:
The Hudson's Bay Rewards program is currently paused. At this time, customers are unable to earn or redeem points. We are not able to track or accumulate points on transactions made during this time and apply them retroactively. We apologize for the disruption.
Hudson's Bay gift cards and gift certificates will not be accepted after April 6, 2025.
That's part of a sad ending for a company that traces its roots back to 1670, making it the oldest continually operating retailer in the world. The company made every effort to continue that, but has failed and has shared its next steps as it liquidates the entire company.
Last ditch effort to save Hudson's Bay fails
After its initial liquidation plan was approved by Canadian courts, Hudson's Bay filed an update to its Companies’ Creditors Arrangement Act (CCAA) proceedings following a series of court-approved extensions.
"The Ontario Superior Court of Justice has granted Hudson’s Bay permission to proceed with a revised liquidation plan, which will temporarily exclude six stores from the initial list. This interim step gives additional time for collaborative efforts with key landlords and stakeholders aimed at restructuring the business," the company shared in a press release.
More bankruptcies:
- Popular restaurant and bar chain files for Chapter 11 bankruptcy
- Popular athletic shoe chain files for Chapter 11 bankruptcy
- Award-winning cosmetics brand files for Chapter 11 bankruptcy
The retailer's other locations began the liquidation process as previously announced, on Monday, March 24.
It was an effort to preserve five Hudson's Bay locations along with a Saks Fifth Avenue store the company operated under a license. Efforts to find a buyer during the period the court allowed Hudson's Bay to seek a sale or additional funding have failed.
"Those locations join 73 other Hudson’s Bay stores, 13 Saks Off 5th stores and two Saks Fifth Avenue stores in dissolving under Canada’s bankruptcy laws. The Hudson’s Bay and Saks Fifth Avenue stores are set to close by June 15, and nine Saks Off 5th stores will close on Sunday (April 27), RetailDive reported.