Hudson’s Bay Company has begun liquidation sales at it prepares to wind down operations at all but six of its Canadian department stores.
Founded in 1670, the Hudson’s Bay Company (HBC) previously announced it intends to complete the liquidation process by June 15. It will maintain three stores in Ontario and those stores are not included in the liquidation sale.
Substantial savings
For now, customers can take advantage of substantial savings online at thebay.com and in store, while supplies last.
The Bay’s Spring Home Sale is offering up to 40 per cent off on bedding, bath, small appliances and kitchen essentials, for example.
Three Ontario stores to stay open
Hudson’s Bay had initially planned to liquidate all stores, including 80 the Bay outlets, three Saks Fifth Avenue locations and 13 Saks Off 5th shops. It will now maintain six locations, which include three in the Greater Toronto Area and three more in Quebec.
Here are the Ontario stores that will stay open.
- 176 Yonge St., Toronto
- 3401 Dufferin St., North York
- 9350 Yonge St., Richmond Hill
Crippling debt
Earlier this month, The Bay announced it would pursue a restructuring transaction under the Companies’ Creditors Arrangement Act as it grappled with crippling debt.
Court documents revealed as of Jan. 1, Hudson’s Bay owed $315 million in trade payables and $422 million in pre-filing secured debt in addition to $724.4 million in mortgage obligations. The Bay’s approximate total secured debt obligation is $1.1294 billion. The company had only $3 million in cash on hand.
Hudson’s Bay employs about 9,364 people nationwide.
The company has blamed a U.S.-Canada trade war, a weak Canadian dollar and changing consumer habits, such as strained household budgets, for its current financial struggles.
Most Ontario stores slated to close
Many of the Bay’s 32 Ontario stores serve as anchor tenants in shopping malls and it’s not clear what might fill those empty spaces moving forward.
In a March 14 news release, Hudson’s Bay revealed it had only secured limited debtor-in-possession financing, which require the full liquidation of the business.
Is my gift card still valid?
Spokesperson Tiffany Bourre previously noted gift cards remain valid, but only through April 6. Previous court documents revealed the company has paused its reward points program.
Hudson’s Bay Mastercard holders cannot view, earn or redeem points. But cardholders can still earn cashback from Neo Financial when using their HBC Mastercard.
Neo Financial, a digital banking platform, announced as of March 12 and until further notice, HBC Mastercard cardholders can earn two per cent cash back on purchases at Hudson’s Bay and one per cent cash back everywhere else.
The cash back offer is a limited-time promotion that can be amended or cancelled by Neo Financial at any time without notice, the company added.
Neo has also confirmed the HBC Mastercard remains fully functional and is unaffected by the Bay’s restructuring process.
“You can keep using your card as usual for everyday purchases or any other needs,” the company added online.
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