TORONTO — Hudson's Bay will return to court today, where it's been seeking permission to liquidate all of its stores as it faces financial troubles.
Ontario Superior Court judge Peter Osborne said in a filing made late Tuesday that he will continue to hear motions related to the beleaguered department store that filed for creditor protection earlier this month.
Osborne said he may also give the retailer and other organizations affected by Hudson's Bay's creditor protection case direction on their way forward.
The judge spent Monday hearing from Hudson's Bay about how it continues to search for financing to keep the company alive. The $23 million it has garnered so far is not enough and necessitates a full liquidation of the business, putting 9,364 jobs at risk, lawyers for Canada's oldest company have said.
Landlords, suppliers and other businesses also appeared at the hearing with many complaining that the case has moved too fast toward a liquidation of all 80 Hudson's Bay locations, three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada.
Some lawyers representing these companies argued their clients had not been provided enough time to consider other avenues to help the business.
A few also opposed the company's request to cease paying rent to landlords.
By the time Monday's hearing wrapped, Osborne said in his Tuesday filing that it was clear to him that "there were many issues about which there was vigorous disagreement."
Because Hudson's Bay's situation was evolving so quickly, Osborne felt "numerous parties had not had time to fully digest the relevant events," nor the "complex and voluminous motion materials" before the court.
However, he observed that many of the parties were prepared "to engage in good faith discussions to see if at least some of the issues could not be narrowed or resolved."
Osborne asked all the sides to try to resolve some of the disagreements that had arisen between them and requested the court monitor, an independent firm of accountants and insolvency specialists appointed in creditor protection, report back on any headway by Tuesday afternoon.
Osborne said he has since heard from the monitor, Alvarez & Marsal, that "significant progress" has been made, but more time is needed to allow discussions to continue.
"In the circumstances, I am prepared to do that, albeit for a very brief period of time," Osborne said in his court filing.
This report by The Canadian Press was first published March 19, 2025.
Tara Deschamps, The Canadian Press
