A number of retailers have gone right to the brink of extinction and managed to find a way to keep operating at the last minute. Bed Bath & Beyond, for example, flirted with closing down many times before it actually happened.
Even then, the retailer barely left the stage before it was purchased by Overstock.com and brought back in a digital-only form.Â
Related: Iconic retail chain closing nearly 500 stores
Over the past 12 months, multiple chains have filed for bankruptcy, reached a deal to survive, and then quickly fell back into bankruptcy. Party City and Joann, for example, both went down that path.
The two chains survived a bankruptcy only to quickly file again and end up being liquidated.
In other cases, a bankruptcy court judge decided that a buyout offer for a company, while not perfect, was better than allowing the chain to close. That happened to David’s Bridal, which was about to liquidate when the ruling gave it a second life.
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Big Lots, another chain that reached the liquidation phase, saw a buyer step in and rescue some stores. In that case, while the Big Lots name will survive, it’s not the original company operating it.
That situation was especially confusing because it was basically a full liquidation followed by a near-immediate reopening under the same name but with new owners.
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Bankrupt retail chain has begun liquidation
Hudson’s Bay has deep roots in Canada and has taken an activist role in its home country.
“In 2021, Hudson’s Bay Foundation launched a $30 million commitment to creating a more equitable future for diverse communities across Canada. Hudson’s Bay Foundation Charter for Change is our promise to help advance reconciliation and racial equity in Canada by changing how we invest and show up in communities,” it shared on its website.
The company, which has been operating since 1670 is the oldest continually operating retailer in the world. It began as a fur trading business and eventually morphed into a department store chain.
More closings:
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- Bankrupt retail chain unloads store leases, key asset
- Popular discount retailer files bankruptcy, closes all stores
Hudson’s Bay filed the Canadian version of Chapter 11 bankruptcy in March. It has begun liquidation sales at its 80 owned-and-operated stores as well as its three licensed Saks Fifth Avenue and 13 Saks OFF 5TH stores in Canada.
The chain had nearly 10,000 employees at the time of its filing. It also operates a website, which remains open during the liquidation.
Hudson’s Bay seeks a buyer
While it has begun the store liquidation process, Hudson’s Bay does not intend to disappear without a fight.
The chain has received court approval to seek a buyer or an investment in the company.
“Hudson’s Bay Company ULC, the Canadian entity comprising the retailer Hudson’s Bay and TheBay.com, is announcing the commencement of: a sale and investment solicitation process (the SISP), which was approved pursuant to an order granted by the Ontario Superior Court of Justice (the Court); and the commencement of a Court-approved lease monetization process (the Lease Monetization Process),” according to a press release.
Related: Another auto supply chain closing most stores, no bankruptcy filed
There’s no guarantee that that process will be successful.
“The SISP is intended to solicit interest in, and opportunities for: (a) one or more sales or partial sales of all, substantially all, or certain portions of the property, assets, and undertakings of the company and certain entities related to the company on a liquidation or going concern basis; and/or (b) an investment in, or refinancing of all or a portion of the business of the company and certain entities related to the company,” the release continued.
Interested parties have until April 30 to file a binding proposal.
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