Retailer with 355-year history may close stores amid restructuring

The oldest retail stores in Canada, Hudson Bay Company, are subject to restructuring through a bankruptcy operation after they are struggling to pay their debts.

The 35 -year -old company, which runs the stores of the Hudson Bay Department and Thebay.com, announced on Friday that it had obtained the protection of creditors in the CCA law from the Supreme Court of Justice in Ontario.

CCAA allows “the insolvent companies that condemn their creditors for more than $ 5 million to restructure their business and financial business,” according to the Canadian government website.

The 3555 -year -old company announced that it runs the Hudson Bay Manage stores on Friday that it had received the protection of creditors in the creditors law at Ontario Upper Company. (Steve Russell / Toronto Star via Getty Images / Getty Images)

Under the procedures, Hudson Bay will seek to “restructure its operations, simplify its costs and re -focus basic strengths.”

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“Our goal is to re -establish a foothold and guarantee the company in the long run in the developed Canadian retail market,” said CEO Liz Rodble. “With this process, we will continue to attend our customers and societies, as we always have.”

The physical fingerprint of the retail stores includes 80 Hudson’s Bay. It also runs three Saks Fifth Avenue stores and more than ten of the fifth stores in Canada through a license agreement, sites that will continue to serve customers, according to Hudson Bay.

Rodippel said that the company “worked with potential investors to re -financing part of our credit facilities to improve our liquidity and support our business plan” earlier in the year, but “the threat and achievement of the trade war created a state of uncertainty in the market and our impact on our ability to complete these transactions,” which led it to search for the creditor’s protection.

The trade relations between the United States and Canada have been liquid in recent weeks.

President Donald Trump, the left, and Canadian Prime Minister Justin Trudeau, attends the NATO summit in December 2019 in Watford, England. (Dan Kitwood / Getty Images / Getty Images)

President Donald Trump carried out a 25 % tariff on imports from Canada on March 4 after a one -month hiatus, which prompted reprisals. Later this week, he made exemptions to Canada on goods under the United States, Mexico and Cananga agreement until early April.

The stocks stumbled on the recession fears, the uncertainty in the Trump tariff

Hudson Bay also said that this and other Canadian retailers are competing with “postpartum transformations” in the retail industry and “consumer spending” violating from the high costs of living, mortgage rates and other economic factors.

She obtained approval of $ 16 million CAD in “Temporary Prisoner Financing” from the restoration of capital and other lenders, according to the company.

She said that Hudson Bay is looking into “strategic alternatives” and has discussions “exploring potential solutions to maintain and enhance her business.”

She said that Hudson Bay is looking into “strategic alternatives” and has discussions “exploring potential solutions to maintain and enhance her business.” (Pavlo Gonchaar/SOPA Images/Lightrockket via Getty Images/Getty Images)

The company described the same in the court file as “the oldest company in North America” ​​and “the most prominent departments store” in Canada.

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The company’s history dates back to 1670, when it obtained the “only trade and trade right” from the King of England when it eventually became Manitoba and parts of Saskatchewan, Alberta, Nonavot, Ontario and Cibik, according to the court’s deposit.

Hudson Bay hires more than 9,300 people, according to a court file.