Hudson’s Bay receives court approval for revised liquidation plan, excludes six locations

Hudson’s Bay Company began liquidation sales on Monday, while temporarily excluding six stores from the initial process.

The Canadian retailer received court approval on Friday to move forward with a revised liquidation plan as part of its ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings. 

For the time being the Downtown Queen Street location at 176 Yonge Street in Toronto, Yorkdale Shopping Center in Toronto, Hillcrest Mall in Richmond Hill, the Downtown Montreal location, Carrefour Laval in Laval, and the Pointe-Claire store in Quebec, will remain open.

The revised plan was strengthened by stronger-than-expected sales over the past week, which exceeded projections and provided Hudson’s Bay with the flexibility to continue operations at the six exempted locations while exploring restructuring options.

The decision allows Hudson’s Bay additional time to collaborate with key landlords and stakeholders in an effort to restructure its business.

“Canadians have shown extraordinary support for Hudson’s Bay over the last two weeks and overwhelmed us with their encouragement and endearment for the brand. We are extremely fortunate to have such an engaged community behind us,” said Liz Rodbell, president and CEO of Hudson’s Bay. 

“Our associates have been met with extraordinary kindness from our customers—each of whom reflects the cherished relationships we have built together over generations.”

Once the liquidation sales begin, all transactions will be final. Gift cards will be accepted until April 6. Meanwhile, the firm’s online site will continue normal operations.

In addition to the liquidation plan, the court also granted Hudson’s Bay authority to repay its debtor-in-possession financing provided by Restore Capital, an affiliate of Hilco Global, along with other lenders. 

Furthermore, the company has received approval to initiate a sale and investment solicitation process (SISP) and a lease monetization process, which are designed to maximize value for stakeholders. The SISP will explore potential strategic investments, partnerships, or sales, while the lease monetization process aims to unlock value from the Company’s lease portfolio.

The company will release further details regarding store closures, final sales events, and customer accommodations in the coming weeks, it said.