Hudson's Bay, Canada’s oldest company dating back to 1670, is set to begin selling off all merchandise at six stores—previously spared from liquidation—starting Friday. This marks a significant step towards the potential end of the retail empire, as there is little hope for finding a buyer for these remaining locations. Adam Zalev, the managing director of Hudson's Bay's financial adviser Reflect Advisors, stated in an affidavit that it is "unlikely" they will find an investor willing to restructure the business.
The six stores were initially excluded from liquidation amid hopes of attracting a buyer or investor capable of sustaining the business. However, Zalev’s latest remarks indicate that these locations are “negatively impacting” Hudson's Bay's chances of securing a backer, with a "low probability" of a viable bid focusing on a six-store model. Nonetheless, if a bid is received that could keep the stores operational, Hudson's Bay retains the right to retract them from the liquidation process, which is expected to conclude by June 15.
This additional liquidation process is a painful yet anticipated development for Hudson's Bay, which filed for creditor protection last month. The company cited significant challenges stemming from the trade war, the effects of the COVID-19 pandemic, and diminished downtown traffic. The court had previously granted permission for Hudson's Bay to liquidate 74 Bay locations, 13 Saks Off Fifth stores, and two Saks Fifth Avenue locations, affecting approximately 9,364 jobs.
In conjunction with the liquidation, Hudson's Bay is endeavoring to find buyers or investors to help carry the retailer forward by either acquiring its assets or taking over its leases. Zalev's prior court filings indicated that 18 unnamed parties, including some landlords, had submitted letters of intent regarding 65 leases. Zalev's latest affidavit was submitted prior to an appearance before the Ontario Superior Court of Justice, where the company sought permission to auction off a collection of 1,700 pieces of art and over 2,700 artifacts, managed by Heffel Gallery Limited.
The auction encompasses significant historical items, including a royal charter granted by King Charles II in 1670, which established Hudson's Bay's fur-trading business and conferred extensive rights over land and trade relations with Indigenous peoples. However, this auction has raised concerns among archival institutions, governments, and historians, who have expressed a desire for these historical pieces to be preserved rather than sold to private interests.
In Zalev’s affidavit, a letter from Grand Chief Kyra Wilson of the Assembly of Manitoba Chiefs emphasized the cultural, spiritual, and historical significance of these items for First Nations peoples. Wilson requested a cessation of the auction, arguing that Indigenous groups must be involved in the process. She stated, "Selling these items at auction without full transparency and consultation with impacted First Nations would not only be morally irresponsible but also represent a continuation of the colonial dispossession of First Nations’ lands and belongings."
The request included calls for a First Nations-led review process and a public catalog of the items considered for liquidation. While Hudson's Bay has yet to disclose the full list of auction items beyond the charter, a source familiar with the auction mentioned that proposed items include paintings dating back to 1650, point blankets, paper documents, and collectible Barbie dolls.
Additionally, Zalev's affidavit included a request from the Canada Advisory Committee for Memory of the World. This committee urged that the charter be retained by a public archival institution, such as the Archives of Manitoba, to ensure the preservation of this unique and irreplaceable document during this transition in corporate ownership.
