Hudson’s Bay to Undergo Full Liquidation Unless an Alternative Solution Emerges

Hudson’s Bay Company ULC (Hudson’s Bay or the Company), the Canadian entity that comprises the retailer Hudson’s Bay and TheBay.com, today announced it has filed documents with the Ontario Superior Court of Justice indicating that, despite exhaustive efforts to secure sufficient financing to pursue a restructuring transaction under the Companies’ Creditors Arrangement Act (CCAA), it has only secured limited debtor-in-possession financing that will require the full liquidation of the entire business. A store-by-store liquidation process will begin as soon as next week.

The Company remains hopeful that key stakeholders, particularly its landlord partners, will engage to explore a viable alternative restructuring path that could preserve jobs, tenancy in retail locations, and a company with deep historic significance before it is too late. This alternative would necessitate significant capital and immediate and substantial cooperation from landlords and other critical partners.

Hudson’s Bay employs approximately 9,364 people. The closure of Hudson's Bay would mark the loss of a key employer and retailer while drastically altering the dynamics of malls nationally by removing a major anchor and driver of customer traffic. The Company is focused on securing the support needed to preserve as many jobs as possible while maintaining its longstanding position in Canadian culture and the economy.

“Our team has worked incredibly hard to identify a viable path forward, and our resolve is strengthened by the overwhelming support from customers and associates who have shared heartfelt stories about Hudson’s Bay and what our stores have meant to them, their families, and their communities across the generations,” said Liz Rodbell, President and Chief Executive Officer of Hudson’s Bay. “These powerful experiences remind us why we must continue to pursue every possible opportunity to secure the necessary support from key landlords and other stakeholders to save The Bay.”

Assuming receipt of a Court order on Monday at the “comeback motion,” store liquidations will begin next week. During the liquidation process, Hudson’s Bay and its licensed Canadian Saks Fifth Avenue and Saks Off 5th stores will remain open to serve customers in stores and, for a limited time, online at TheBay.com. The Company will share additional details regarding impacted locations, closure timelines, and customer accommodations, including final sales events. Once the liquidation sale begins, all sales will be final.

About Hudson’s Bay Company ULC

Hudson’s Bay Company ULC is a Canadian entity that includes the retail company Hudson’s Bay, comprising 80 stores and TheBay.com. Through a licensing agreement, 3 Saks Fifth Avenue and 13 Saks OFF 5TH stores also operate in Canada under Hudson’s Bay Company ULC.

Additional Information

Court filings as well as other information related to Hudson’s Bay Company’s CCAA proceedings will be available on the Monitor’s website at www.alvarezandmarsal.com/HudsonsBay. Information regarding the CCAA process may also be obtained by calling the Monitor’s hotline at (416) 847-5157 (toll free), or by email at hudsonsbay@alvarezandmarsal.com. Hudson’s Bay will continue to provide updates regarding the CCAA proceedings as developments or circumstances may warrant.

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