Hudson’s Bay’s proposed liquidation is still on hold as the company works to address its differences with landlords and other stakeholders after filing for creditor protection earlier this month.
The department store chain that holds the title of Canada’s oldest company asked an Ontario court Monday for permission to close all 80 of its stores, along with three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada.
While lawyers for Hudson’s Bay said it would continue to seek funding to keep the company alive, they argued a full liquidation was necessary because they hadn’t found enough backing yet.
Meanwhile, lawyers for landlords, suppliers and employees argued the company was rushing too quickly toward a liquidation, while some disagreed with the retailer’s request to withhold rent from property owners.
Ontario Superior Court judge Peter Osborne asked Hudson’s Bay and its stakeholders to settle some of their disagreements through discussions and then return to court, which they did Wednesday.
At the Wednesday hearing, they said their discussions had been constructive, but they needed more time. They said they expected to reach enough consensus to be able to return to court on either Thursday and Friday, when Hudson’s Bay is expected to continue to ask for permission to liquidate.
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