Hudson's Bay expected back in court to extend creditor protection

CTV News

13-05-2025

TORONTO — Hudson's Bay is due to return to an Ontario court today for the first time in roughly two weeks to seek a reprieve from the hundreds of businesses it owes money.
The department store is expected to use the Tuesday morning appearance to ask Judge Peter Osborne to stretch the period of time it is protected from its creditors to July 31 rather than ending May 15.
The extension request comes as the business, which holds the title of Canada's oldest company, appears to be hurtling toward a new future.
After filing for creditor protection in March because it was having trouble paying 26 pages' worth of landlords, vendors and suppliers almost $1 billion they were collectively owed, Hudson's Bay put itself, its assets and its leases up for sale.
Seventeen bidders want the entire business or treasures like its intellectual property. Twelve are vying for 39 leases.
In a court filing, the retailer said an extension to the creditor protection it was first granted in March will help the company complete these sales processes and finish liquidating its 80 Bay stores and 16 Saks banners.
The additional time would mean the company could 'maximize value for the benefit of the (Bay) and their stakeholders,' the filing said.
So far, proceeds generated by the liquidation sales wrapping at the end of the month have exceeded even Hudson's Bay's expectations several times.
Between March 8 and 14, the company made $21 million, beating its own estimates by about $7.4 million and allowing it to return some last-minute financing it received from Restore Capital that month to keep it afloat, court documents show.
Between April 19 and May 2, sales surpassed $129 million, about $36.8 million more than the company initially forecast, the documents reveal.
Because the cash is 'in excess of the applicants' operating needs,' the Bay wants to repay as much as $165 million to its senior lenders, Bank of America and Restore Capital LLC.
It is expected to ask the court on Tuesday for permission to make these repayments.
This report by The Canadian Press was first published May 13, 2025.
Tara Deschamps, The Canadian Press