Bankrupt retail chain gets possible billion-dollar rescue lifeline

It may not seem like a very good time to be any kind of retailer right now. 

Malls continue to see foot traffic dwindle. Restaurants are closing at an impressive clip. And discount retailers are struggling to maintain profits. 

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And it’s pretty hard to stay afloat when you’re getting pressure from both sides of the business. 

On the one hand, many retailers are getting squeezed by looming tariffs and rising prices, which increase the cost of imported goods and make doing business internationally more expensive. 

On the other side of the equation, customers are pinching pennies as the cost of living goes up. 

This means that they expect low prices from their retailer of choice — or they’ll go elsewhere. 

Which forces stores to either reduce sticker prices in something of a race to the bottom or risk kissing their customers goodbye. 

Upscale retailers also have their own set of problems, though the situation is a bit more complex.

Luxury retailers have a unique issue

Upscale retail chains are a different animal entirely. 

They don’t worry as much about their customers fleeing when prices are raised (within reason). 

Most customers who are spending an outsized amount on shoes, clothing, or accessories tend to have more disposable income and are therefore slightly more resilient to a price hike by a few percentage points.

However, they must contend with a multitude of other factors. 

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For instance, their customers tend to be very concerned with quality and access. 

A retailer must work ceaselessly to bring in high-interest brands — and keep them exclusive to its store — to edge out the competition. 

If these brands suddenly become accessible elsewhere, especially online, then the store risks losing customers. This is especially the case if it can’t scale up its online operations quickly enough. 

Large retailer may get a lifeline

That’s partly what was happening with Hudson’s Bay, the oldest upscale retail chain in North America. 

The department store, which is based out of Canada, had plans to close all its stores and liquidate in April. 

Now, however, the chain has reportedly received multiple bids for buyout. This comes just weeks after the store reported its liquidation sales had been going so well that it was actually generating more cash than it needed to continue operating. 

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Over 80 stores are in the process of closing, and the identity of Hudson’s Bay’s potential buyers have not been disclosed. 

If a deal does go through, however, it will likely include some — or all — of the following: 

• Stores
• Leases
• Intellectual property 
• Real estate

None of the bids are from insiders, and interest varies based on size and scope. 

“Some suitors are interested in operating stores or retaining parts of the business as a going concern. Others are focused strictly on acquiring Hudson’s Bay’s intellectual property,” Retail Insider writes. 

As of January 2025, it’s estimated that Hudson’s Bay’s net assets are worth somewhere around $3.7 billion and its liabilities are about $3.2 billion.

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