With $950 million owed to nearly 1,900 creditors, Canada’s oldest company is planning what’s likely its final fire sale.
Driving the news: Hudson’s Bay Company is planning to liquidate its entire business including all of its inventory, furniture and equipment by mid-June, a process that could begin as soon as this week if it's given the green light in court today.
- The retailer says it hasn’t been able to drum up enough cash from investors to keep any part of its business afloat during a financial restructuring.
By the numbers: The company had just $3 million in cash on hand as of January 1, according to court documents. That’s about one-fifth of what they owe Ralph Lauren alone.
- Per the Toronto Star, the Bay owes $520 million to unsecured creditors, including brands like Chanel, the owner of the Eaton Centre, and even the federal government.
Why it matters: The company was adamant just last week that it would be able to restructure and avoid bankruptcy, but with a three-month timeline to liquidate all of its assets, the chances of the Hudson’s Bay Company surviving are near zero.
Big picture: Over 9,000 people will be out of jobs if the company folds, and given its dire financial situation, there are concerns about those workers' pensions. When Sears Canada went out of business in 2018, its workers had to take reduced payouts in retirement.—LA