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Multiple Parties Interested in Hudson’s Bay Assets
Multiple parties have formally expressed interest in acquiring Hudson’s Bay store assets, reports say.
But Canada’s last two remaining department-store chains say they will not be submitting bids.
The Globe and Mail and Toronto Star reported that multiple groups filed notice of their interest by Monday’s deadline, citing a letter distributed by court-appointed monitor Alvarez & Marsal.
But representatives from La Maison Simons and Holt Renfrew told the Canadian Press that they do not intend to file bids by the April 30 deadline.
Lisa Hutcheson, a J.C. Williams Group retail analyst, told CP that she was not surprised by Simons and Holt Renfrew’s lack of interest.
“Retailers are getting very mindful of the customer still wanting a physical presence but balancing that with not having too much real estate,” she told the wire service.
Taking over one or two Bay locations in the future might be something for them to consider, because the stores are situated in prime locations and the Bay is under creditor protection, she told her interviewer. But considering Canada’s limited population, takeovers would pose challenges.
“There’s still a cost to build these stores out,” Hutcheson told CP. “Millions goes into them and it’s not even just the rent, but the commitment to fill the store with inventory and staff.”
Altogether, 74 Bay locations and 15 Saks-branded outlets are slated to be liquidated. Store-closure sales are well underway across Canada.
B.C.-based billionaire Weihong Liu’s interest in acquiring Bay assets was already known. She chairs mall owner Central Walk, which is listing Woodgrove centre in Nanaimo, B.C., a secondary market.
Colliers is co-ordinating the listing.
All but six Bay stores are scheduled to close.
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Pictured: Hudson’s Bay store at Market Mall in Calgary.
Photo: Monte Stewart. All rights reserved. No republishing permitted.
