TORONTO — Canada’s oldest retailer, Hudson’s Bay, has filed for creditor protection and intends to restructure the business.
The department store company that dates back to 1670 announced the move Friday evening, saying it has been facing “significant” pressures, including subdued consumer spending, trade tensions between the U.S. and Canada and post-pandemic drops in downtown store traffic.
“While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape, despite the sector-wide challenges that have forced other retailers to exit the market,” Liz Rodbell, president and CEO of Hudson’s Bay said in a press release.
“Now more than ever, it is critical that Canadian businesses are protected and positioned to succeed.”
As part of the filing it made with the Ontario Superior Court of Justice on Friday, Hudson’s Bay said it was exploring several strategic options to strengthen its business and said it would not make promises but was committed to preserving jobs where possible.
While the process can lead to the sale or closure of a business, Hudson’s Bay appears intent on avoiding those possibilities and keeping much of its sprawling retail footprint alive.
The company has 80 Hudson’s Bay locations that sell everything from apparel to housewares, cosmetics and furniture.
Through a licensing agreement, it also owns three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada, which will continue to operate.
Saks Global, which owns U.S. Saks locations as well as Neiman Marcus and Bergdorf Goodman stores, is not connected to the creditor protection filing that was made as the U.S. continued to threaten Canada with additional tariffs Friday.
Rodbell said the U.S.’s earlier provocations had already harmed Hudson’s Bay. While the company was negotiating with potential investors to bring more liquidity to the business, the threats and eventual implementation “created significant market uncertainty” that ultimately stopped any possible deals from closing.
The company spent the last several years in a state of deterioration as it closed several stores and carried out several rounds of layoffs..