Everyone has a reliable retail chain they go to when they need something for a special occasion, and many have their mothers to thank for that. Although at first, mom might have forced us to go, these retailers later gained our loyalty like no other.
From the first day of kindergarten to senior prom to college graduation, and for some, a few wedding invites, these retailers have been with us through every stage of our lives.
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However, decades-old retail empires are beginning to crumble, with renowned chains like Macy’s (M) , Kohl’s (KSS) , and JCPenney (JCP) closing multiple locations and exiting neighborhood malls.
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Maybe these retail chains have exceeded their lifespans, and with so much emerging competition, keeping up can become nearly impossible.
Hudson’s Bay files for Chapter 11 bankruptcy.
Image source: Bloomberg/Getty Images
Iconic retail chain files for Chapter 11 bankruptcy and liquidates all locations
Hudson’s Bay (HBAYF) filed for creditor protection (CCAA), known as Chapter 11 bankruptcy in the U.S., with the Ontario Superior Court of Justice in Canada on March 14 of this year. This prompted many liquidation sales across its 74 owned and operated stores, three licensed inside Saks Fifth Avenue, and 13 inside Saks Off 5th locations in Canada.
This filing not only marked the end of a historic retail run for most Hudson’s Bay stores, but also threatened the jobs of nearly 10,000 employees.
However, Hudson’s Bay wasn’t going to let nearly 355 years disappear in thin air. It received court approval to find a buyer to acquire the company by April 30 and continue its legacy, leaving only six stores free of liquidation.
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Time went on, and the retailer began to lose hope with no adequate buyer in sight.
Only a few weeks later, Hudson’s Bay made the tough decision to include these six stores in the liquidation sales since their exclusion negatively impacted the company. The retailer proceeded to sell all remaining merchandise at discounted prices beginning April 25.
The end of an era for such a historic retailer never felt closer. However, a surprising turn of events might have just rescued it from its demise.
Hudson’s Bay finds a new owner to continue its legacy
Hudson’s Bay has sealed a deal with Canadian Tire Corporation on May 15 to sell its intellectual property for over $30 million as part of its restructuring plan after filing for bankruptcy.
“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” said Hudson’s Bay President and CEO Liz Rodbell in a press release. “I have no doubt they will be strong stewards of the more than 350-year HBC legacy as they move our iconic brands forward,” she added.
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With this acquisition, Canadian Tire Corporation will become the owner of the Hudson’s Bay brand, including all company names, logos, symbols, and the iconic HBC Stripes.
The agreement is still awaiting court approval, and if all goes according to plan, it’s expected to close by this summer.
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