Primaris REIT announced Tuesday that it expects nine leased Hudson’s Bay stores located within its retail properties to close.

The iconic department-store chain is currently undergoing a restructuring after being placed under creditor protection.

Only six of the company’s 96 stores are slated to remain open, but senior secured lenders’ lawyers have warned that all of the stores could be pushed into receivership.

All of the HBC stores within Primaris shopping centres have begun liquidation.

“Primaris REIT has been preparing for the departure of HBC, as its department store peers downsized and ceased operations over the past 15 years, including Zellers, Target and Sears,” said Patrick Sullivan, the REIT’s president and chief operating officer. “The departure of Canada’s final conventional department store will enable future value creation for our stakeholders, paving the way for optimal use of space that better reflects the evolving needs and desires of the growing communities.”

As of Monday, Hudson’s Bay Company (HBC) occupied approximately 1 million square feet of gross leasable area across the REIT’s portfolio, accounting for about 1.4% of 5.2% of total annual minimum rent.

In disclosing the expected store closures, Primaris also announced the divestiture of two retail properties: St. Albert Centre in St. Albert, Alta., which includes an HBC store, and Sherwood Park Mall, Sherwood Park Professional Centre and excess land in Sherwood Park, Alta. The combined sale price for these properties was $167 million. St. Albert Centre sold for $60 million to an unidentified private real estate operator and included a $10-million take-back loan bearing a 6% interest rate and maturing in one year. The Sherwood Park assets for $107 million altogether to an undisclosed private retail operator and developer.

Both St. Albert Centre and Sherwood Park were debt-free at the time of sale.

“These strategic dispositions further demonstrate our track record of executing on our well-defined growth strategy focused on market leading shopping centres in growing Canadian markets,” said Alex Avery, the REIT’s CEO. “Considering property transactions year to date, we have enhanced the appeal of our enclosed shopping centre portfolio, to our retailer tenants and shoppers, driving the portfolio’s annual same-store sales productivity from $705 per square foot as at December 31, 2024, to approximately $752 per square foot on a pro forma basis.”

St. Albert and Sherwood Park are Edmonton-area bedroom communities.

Pictured: Hudson’s Bay store at Primaris REIT-owned Oshawa Centre in Oshawa, Ont.

Photo: Yellow Pages

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