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Revealed Mar 21, 2025 • 3 minute learn
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TORONTO — Hudson’s Bay is because of liquidate all however six of its shops beginning on Monday.
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Right here’s how the method will unfold.
Which shops are a part of the liquidation?
Hudson’s Bay needs to liquidate all however six of its shops. It has 80 shops below the Hudson’s Bay banner, in addition to the three Saks Fifth Avenue shops and 13 Saks Off fifth places in Canada that it owns by way of a licensing settlement.
These shops are divided between 32 places in Ontario, 16 in B.C., 13 every in Alberta and Quebec, and two in every of Manitoba, Nova Scotia and Saskatchewan.
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Saks Fifth Avenue’s Canadian websites are cut up between Ontario and Alberta, whereas Saks Off fifth has shops in Ontario, B.C., Alberta, Quebec and Manitoba. U.S. shops aren’t a part of the liquidation.
Which shops will keep open?
The six shops being saved — for now — are the flagship location on Yonge Avenue in Toronto, in addition to a retailer within the metropolis’s Yorkdale mall and one other at Hillcrest Mall in Richmond Hill, Ont.
The remaining three are within the Montreal space, the downtown location in addition to the Carrefour Laval mall and Pointe-Claire, Que. shops.
May this alteration?
The corporate was capable of pull some shops out of liquidation as a result of gross sales have been so excessive since its creditor safety case started earlier this month.
Nonetheless, if it doesn’t discover a long-term resolution, Hudson’s Bay lawyer Ashley Taylor stated the six places might finally be liquidated as properly.
However, if it secures extra financing, he stated the corporate could possibly save extra shops.
What’s the timeline for liquidation?
The retailer says it intends to start out the liquidation on Monday and wrap it up by June 15.
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It might vacate the shops totally by June 30.
How deep might reductions be?
Hudson’s Bay hasn’t stated. When Nordstrom left Canada in 2023, liquidation gross sales started with reductions of 5 and 10 per cent, shocking some consumers.
The reductions grew steeper as time went on — however a lot of the merchandise was offered early on, leaving a restricted choice of objects behind.
Will the Bay’s “shops inside a retailer” be included within the liquidation?
It relies upon. Hudson’s Bay lawyer Elizabeth Pillon informed courtroom on March 17 that a few of these shops inside a retailer have requested for stock to be eliminated, however others are occupied with collaborating in liquidation. She didn’t identify which distributors fall into which group.
What occurs to Hudson’s Bay reward playing cards?
The corporate will cease accepting reward playing cards after April 6 and has already stopped promoting them. As of Feb. 1, Canadian prospects had excellent reward playing cards value a complete worth of about $24.2 million.
What occurs to Hudson’s Bay Rewards?
The loyalty program has been paused whereas the creditor safety course of continues. Greater than 8.2 million Canadian prospects maintain about $58.5 million in unused factors.
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Will the corporate settle for returns? @Hudson’s Bay says purchases at its liquidating places can be remaining sale.
What occurs to workers?
The liquidation locations 9,364 jobs in danger, the majority of that are in Ontario.
Some 121 workers can be inspired to remain on with a complete of $2.7 million in financial incentives paid by Sept. 30, Taylor stated Monday. The corporate requested for the phrases of this cost course of to be sealed to keep up worker confidentially.
Worker lawyer Hatnay stated the winding down of Hudson’s Bay will quantity to one of many largest mass terminations within the nation since Sears Canada folded.
What occurs to employee pensions, advantages and severance?
The corporate’s pension plan had 4,000 energetic and inactive members with outlined profit entitlements and about 17,000 energetic and inactive members with outlined contribution entitlements as of Dec. 31, 2024. Members of the pensions labored at Hudson’s Bay in addition to its Bay acquisitions Simpsons, Zellers and Kmart Canada.
The pension plan is “sufficiently funded and is ready to fulfill its liabilities,” courtroom paperwork say.
Workers have been informed their pensions are protected, however a supplemental retirement pension plan, which Hatnay stated covers executives and senior managers, is underfunded by hundreds of thousands, as are some advantages funds, in keeping with courtroom paperwork.
What does the imply for Hudson’s Bay’s head workplace?
Hudson’s Bay leases an workplace tower in downtown Toronto on Bay Avenue, which is managed by a 3rd occasion. It isn’t a part of the liquidation.
This report by The Canadian Press was first revealed March 21, 2025.
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