Hudson’s Bay Company ULC, the Canadian entity encompassing department store chain Hudson’s Bay and e-commerce platform TheBay.com, announced the launch of a court-approved sale and investment solicitation process (SISP), along with a separate lease monetization initiative. Both processes are being conducted under the supervision of the Ontario Superior Court of Justice as part of the company’s ongoing efforts to restructure under the Companies’ Creditors Arrangement Act (CCAA).
The move comes just weeks after Hudson’s Bay filed for CCAA protection on March 7, seeking breathing room to reorganize its operations amid mounting financial pressures. The company’s future has since been the subject of significant uncertainty following the announcement that 74 of its 80 department stores, as well as all Saks OFF 5TH locations in Canada and likely all Saks Fifth Avenue stores, would shutter in the coming months.
A Court-Supervised Process to Solicit Offers for Assets and Investment
The SISP is designed to attract interest in the purchase or refinancing of Hudson’s Bay’s assets. Reflect Advisors, LLC, acting as financial advisor, will manage the process in coordination with Alvarez & Marsal Canada Inc., the court-appointed monitor.
The objective is to solicit interest in all or part of the company’s business—whether through asset sales, investment, or refinancing—on either a liquidation or going concern basis. Interested parties will gain access to a virtual data room and confidential materials, provided they sign a non-disclosure agreement approved by both the company and the Monitor.
According to documents filed with the court, binding proposals from qualified parties must be submitted by April 30, 2025, at 5:00 p.m. EDT. The SISP outlines further terms and deadlines for those wishing to participate in what is expected to be a highly scrutinized process given Hudson’s Bay’s historical significance in Canadian retail.
Separate Lease Monetization Process Underway
In tandem with the sale and investment process, the company has also initiated a court-approved Lease Monetization Process aimed at disposing of or otherwise transacting its leasehold interests. This includes potential assignments, surrenders, or sales of leases across the country.
This lease-focused effort is being led by Oberfeld Snowcap Inc., a prominent retail real estate advisory firm. Under the supervision of the Monitor, Oberfeld Snowcap will work to secure proposals related to the leases held by Hudson’s Bay and affiliated entities. As with the SISP, the lease process includes access to a virtual data room and documentation, also contingent on an NDA.
Non-binding letters of intent for the lease process are due earlier—by April 15, 2025, at 5:00 p.m. EDT. Jay freedman at Oberfeld Snowcap cap be reached at: jay@oberfeldsnowcap.com
Scope of Store Closures and Impact on Canadian Retail Landscape
The restructuring plan announced earlier in March signaled a seismic shift in the Canadian retail landscape. Of Hudson’s Bay’s 80 stores nationwide, 74 are expected to permanently close. The closures also encompass the entire Saks OFF 5TH portfolio in Canada, totaling 13 stores, and two of the three Saks Fifth Avenue stores, with sources indicating that the third location in downtown Toronto is also likely to close.
The decisions could result in the loss of more than 9,000 jobs, marking one of the largest retail layoffs in Canadian history. Liquidation sales began on March 25, 2025, with the bulk of store closures anticipated by June.
However, six Hudson’s Bay stores have been temporarily excluded from liquidation due to unexpectedly strong sales performance. These include the flagship store on Yonge Street in downtown Toronto, Yorkdale Shopping Centre, and Hillcrest Mall in Richmond Hill. In Quebec, three high-performing stores were spared for now: downtown Montreal, CF Carrefour Laval, and CF Fairview Pointe-Claire.
Recent Legal Setback Complicates Restructuring Plans
A recent court decision has thrown a wrench into Hudson’s Bay’s restructuring roadmap. Ontario Superior Court Judge Peter Osborne rejected a proposed agreement between the company and its lenders, ruling it was “neither necessary nor appropriate at this time.” The rejection raises the stakes, as some lenders may now seek to move the company into receivership—an outcome that would strip HBC’s management of operational control.
Despite the legal roadblock, Hudson’s Bay continues to explore various strategic alternatives, hoping to secure new investment or a buyer to preserve part of the business. Industry observers believe the company may be seeking a buyer for its e-commerce operations and its remaining high-performing stores, while simultaneously offloading real estate leases and shuttering underperforming locations.
A Legacy in Question
Founded in 1670, Hudson’s Bay is Canada’s oldest retailer and the oldest operating company in North America. Once a fur trading giant, the company evolved into a dominant department store chain and was long considered a pillar of Canadian commerce.
In recent years, however, Hudson’s Bay struggled with a changing retail environment, rising operating costs, and intense competition from online players and off-price retailers. A series of ownership changes, divestments, and leveraged financing left the company increasingly vulnerable to macroeconomic pressures. Some are also accusing owner Richard Baker of ‘demolition by neglect’, as the condition of stores and the online business deteriorated significantly in recent memory.
Though some assets like real estate holdings and the e-commerce platform TheBay.com have value, some retail experts suggest that a complete revival of the brand in its traditional format may be unlikely without a significant strategic overhaul and capital injection.
Monitor and Advisors Now at the Helm
While Hudson’s Bay continues to operate under CCAA protection, much of the restructuring will now be steered by court-appointed advisors. The Monitor, Alvarez & Marsal Canada Inc., is overseeing the company’s operations, while Reflect Advisors and Oberfeld Snowcap are responsible for navigating the sale and lease processes.
The next several weeks will be crucial. Should no satisfactory bids emerge by the respective April deadlines, Hudson’s Bay may face further asset liquidations or creditor actions, including receivership.
More from Retail Insider:
