Hudson’s Bay to liquidate remaining seven stores

Department store group Hudson’s Bay Company has confirmed that it plans to liquidate its remaining six own brand stores and one Saks Fifth Avenue location. The company deduced that a viable bid for the six-store model was now “unlikely”.

From April 25, the remaining stores will therefore join 73 Hudson’s Bay sites, 13 Saks Off 5th locations and two Saks Fifth Avenue stores that are already hosting liquidation sales.

The addition of the seven further locations comes on the back of Hudson’s Bay filing a Companies’ Creditors Arrangement Act (CCAA) in March.

The process began after the Canadian retail group failed to secure sufficient financing to proceed with a restructuring plan, only managing to pin down limited debtor-in-possession financing that would require a full liquidation.

At the time, Hudson’s Bay said it was hopeful that key stakeholders would engage in exploring “a viable alternative restructuring path that could preserve jobs, tenancy in retail locations and a company with deep historic significance before it is too late”.

It is still possible for an interested party to place a bid on certain sites in accordance with the Sale of Investor Solicitation Process (SISP), which remains ongoing, with applicants to then be able to withdraw the stores from the liquidation sale. The deadline for submissions is April 30.

Hudson’s Bay has now provided dates for specific expected store closures, with its stores in Canada anticipated to operate until no later than June 15 and nine Saks Off 5th stores to close April 27.