Canadian department store chain Hudson’s Bay Company has revealed plans to initiate a full liquidation of its business as it failed to obtain the necessary funding to proceed with a restructuring plan.
The company, with a workforce of 9,364, has stated in the filings submitted to the Ontario Superior Court of Justice that it has only obtained limited debtor-in-possession financing – insufficient to avoid liquidating the entire business. This is despite attempts to secure adequate funds to facilitate a restructuring transaction under the Companies’ Creditors Arrangement Act (CCAA).
The company is set to commence store-by-store liquidation as early as the week beginning 17 March 2025 unless an alternative solution is found.