Hudson’s Bay labels bankruptcy chatter “rumour or speculation”
The Hudson’s Bay Company (HBC) has responded to a Wall Street Journal report claiming the Canadian department store chain will soon file for bankruptcy.
The report, published Friday, cited sources “familiar with the matter” and said the filing could happen “within days.”
When asked about the report, a Hudson’s Bay representative told Daily Hive via email that the company does “not comment on rumour or speculation.”
JHVEPhoto/Shutterstock
In July 2024, HBC announced it was buying out U.S.-based luxury department store chain Neiman Marcus.
The US$2.65-billion (or C$3.61-billion) acquisition was approved after several months of negotiations. It resulted in HBC establishing Saks Global, which would comprise the Saks Fifth Avenue and Saks Off 5th brands, Neiman Marcus and Bergdorf Goodman, as well as HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets.
The acquisition was finalized in December 2024.
Hudson’s Bay Co. acquired Saks Fifth Avenue in 1998.
HBC has experienced difficulty with some of its department store locations across Canada over the past few years.
In March 2022, Hudson’s Bay closed its massive and historic Toronto store. The company laid off over 600 employees the year before shuttering, citing COVID-19 lockdown pressures.
In January 2023, HBC announced layoffs that impacted two per cent of its corporate staffers.
Geoffrey Abubakary/Submitted
In May 2023, the company laid off another 250 employees.
Throughout 2024, the Hudson’s Bay store in downtown Vancouver also experienced a series of “maintenance issues” impacting its escalators and elevators and even resulted in the location’s temporary closure last July.
Recently, the company also cancelled plans to reopen its location at Oakridge Centre shopping mall in Vancouver.
Do you still shop at Hudson’s Bay? Let us know in the comments.
With files from Isabelle Docto and Imaan Sheikh