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Hudson’s Bay Company, also known as The Bay and HBC, was granted protection under the Companies’ Creditors Arrangement Act on March 7.

RioCan disappointed by filing

In a released March 18, RioCan said HBC’s recent CCAA filing “is disappointing.”

The real estate investment trust said it remains committed “to protecting the interests of its Unitholders and other stakeholders.”

RioCan noted it will pursue all available business and legal avenues, and will leverage its extensive leasing and development capabilities to achieve the best possible outcome for each of the properties within its joint venture with HBC.

The HBC locations in the joint venture include “prime real estate within Canada’s major markets,” RioCan added, including sites that have value either as operating retail centres or redevelopment opportunities.

“Our team has a proven track record of finding solutions for vacant space and will work to protect the value of the real estate in the (joint venture),” said RioCan president and CEO Jonathan Gitlin in a news release. “This process will take time, expertise and collaboration among all stakeholders. With a strong core business, team and balance sheet, RioCan is well-positioned to navigate this situation. We will provide updates as we progress.”

RioCan said it has provided credit support totaling $88.7 million in the form of a loan guarantee and mezzanine loans to HBC through the joint venture. In exchange, RioCan said it has protected its interests through the receipt of security in several joint venture properties.

Unifor speaks out for employees

As shoppers and onlookers ponder The Bay’s future, Canada’s largest private sector union is speaking up for employees in Ontario.

Unifor, which represents about 320 workers at the company’s Windsor, Kitchener and Toronto Sherway Gardens stores and its Toronto e-commerce warehouse, urging HBC to protect and prioritize workers’ wages, pension and benefits during the restructuring.

In a news release, Unifor national president Lana Payne noted workers have been concerned for the stores’ future for “some time.”

“Unifor members remain committed to HBC’s continued operations and are entitled to the protections bargained in their contracts,” Payne said.

The company employs about 9,360 workers, according to court documents, who could lose their jobs if HBC liquidates and closes all stores.

Financial struggles and the status of gift cards

As of Jan. 1, 2025, Hudson’s Bay had approximately $3 million in cash on hand. The company owed $315 million in trade payables and $422 million in pre-filing secured debt in addition to $724.4 million in mortgage obligations, for an approximate total secured debt obligation of $1.1294 billion.

HBC spokesperson Tiffany Bourre previously noted HBC gift cards remain valid up to and including April 6.

Hudson’s Bay has paused its reward points program. Customers can no longer earn or redeem points.

Similarly, Hudson’s Bay Mastercard holders cannot view, earn or redeem points. But cardholders can still earn cashback from when using their HBC Mastercard.

Neo Financial, a digital banking platform, announced as of March 12, and until further notice, HBC Mastercard cardholders can earn 2 per cent cash back on purchases at Hudson’s Bay and 1 per cent cash back everywhere else.

The cash back offer is a limited time promotion that can be amended or cancelled by Neo Financial at any time without notice, the company added.

When store liquidation could begin

HBC said it intends to begin liquidating stores as early as this week. The Bay, plus Canadian Saks Fifth Avenue and Saks Off 5th stores will remain open to serve customers. will continue to provide e-commerce options.

Once the liquidation sale starts, all sales will be final, HBC said.