One of Hudson’s Bay’s lenders says it’s willing to back changes to a restructuring agreement that would give the retailer more time to find a way to save six stores it has so far spared from liquidation.
A lawyer for Restore Capital LLC says his client is open to revising a deadline that would force the ailing department store to start liquidating its six surviving stores on April 8, if it hasn’t found a likely transaction to give it a way forward by the day before.
Linc Rogers says Restore is willing to give Hudson’s Bay until April 30 because he wants to resolve some of the disagreement that has sprung up in court.
Landlords have opposed the agreement, saying its early April deadline conflicts with another process the court approved Friday to facilitate a search for potential investors or buyers for portions of the business. That other process gives prospective buyers until April 30 to make bids.
Hudson’s Bay workers are speaking out after learning they will receive no severance pay as the company confirms it will pay out $3 million in bonuses to executives and managers handling the liquidation of most stores.
The landlords have also argued that the agreement bars Hudson’s Bay from restructuring rather than supports restructuring and puts the company firmly on a path to full liquidation rather than finding a way to survive.
Hudson’s Bay has begun liquidating all but six of its 80 Hudson’s Bay, 13 Saks Off Fifth and three Saks Fifth Avenue stores. The six that have so far been spared have been split between the Greater Toronto and Greater Montreal areas.
