Hudson's Bay Company is facing nearly $1 billion in debt, primarily due to reduced foot traffic and economic challenges exacerbated by the COVID-19 pandemic. Filing for creditor protection revealed the company owes $950 million to around 2,000 creditors, including major brands like Nike and Estee Lauder. The company reports only $3 million in cash and significant secured debts. Industry experts note the size of this insolvency is unprecedented for Canada but not surprising, given that many retailers have experienced financial strain in recent years due to the pandemic.
Retailers in the last several years since the COVID pandemic have really been having a hard time with less foot traffic and all of the economic issues.
The scale is certainly monumental for insolvency proceedings as far as Canada goes. It's a very large one.
Secured creditors are lenders who give out loans to companies and ensure they are paid back by taking on some of the company's assets as collateral.
Unsecured creditors, like employees and suppliers, tend to be at the bottom of the food chain and unfortunately, they face the most risk.
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