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Hudson's Bay Seeks Creditor Protection Amid Financial Challenges
Hudson's Bay, Canada's oldest retailer, has filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) as it faces significant financial pressures. The company, which dates back to 1670, has been grappling with subdued consumer spending, trade tensions between the U.S. and Canada, and a decline in downtown store traffic post-pandemic.
The retailer operates 80 locations across Canada, offering a wide range of products, including apparel, housewares, and cosmetics. It also manages three Saks Fifth Avenue stores and 13 Saks Off 5th locations through a licensing agreement. However, these operations are not affected by the creditor protection filing.
Hudson's Bay's President and CEO, Liz Rodbell, emphasized that this move is a necessary step to strengthen the company's foundation and ensure its continued presence in Canada's retail landscape. The company is exploring strategic options to preserve jobs and maintain its retail footprint while navigating the restructuring process.
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