Retail and insolvency experts expect Hudson’s Bay will close some of its stores as it restructures through creditor protection.
While the department store chain dating back to 1670 hasn’t announced plans to shutter locations, Insolvency Insider newsletter editor Dina Kovacevic says it’s not unusual for retailers under creditor protection to take such a step.
Kovacevic says it is likely Hudson’s Bay and its advisers will figure out which of its 80 stores are least profitable and work to liquidate them, providing some breathing room to the higher performing locations.
Liza Amlani, the co-founder of the Retail Strategy Group, agrees closures could be on their way and warns that would spell layoffs for workers at Hudson’s Bay, which is Canada’s oldest company.
If that process unfolds, Amlani says shoppers would notice liquidation sales and everything from inventory to store furniture would be sold off.
Hudson’s Bay attributed the creditor protection filing it made Friday to subdued consumer spending, trade tensions between the U.S. and Canada and post-pandemic drops in downtown store traffic.
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