Hudson’s Bay Company (HBC) is moving to repay up to $165 million in senior debt using proceeds from store liquidation sales, according to a court filing made Wednesday.

The retailer, which has been operating under creditor protection since March 7, is using the cash generated from the clearance of all 74 Hudson’s Bay stores, along with 15 Saks-branded stores in Canada.

The company’s CFO, Jennifer Bewley, stated in an affidavit that the liquidation had produced cash beyond operating needs. HBC is seeking a court extension under the Companies’ Creditors Arrangement Act to complete liquidation efforts by the end of May.

Meanwhile, the company and court-appointed monitor Alvarez & Marsal are reviewing bids for its leases and remaining assets, including its intellectual property. Executive chairman Richard Baker and other insiders are not bidding.

Additionally, HBC is preparing to auction off its historic art and artifact collection, which includes more than 1,700 artworks, over 2,700 artifacts, and the 1670 royal charter that founded the company.

Pictured: Hudson’s Bay store at Metroplis at Metrotown in Burnaby, B.C.

Photo: Monte Stewart. All rights reserved. No republishing permitted.