The potential closure of Hudson’s Bay has a Rideau Street hair salon wondering about its future and whether it will ever recoup thousands of dollars owed to them by Canada’s oldest retailer.
Sales at Hudson’s Bay could begin as early as Tuesday as it looks to liquidate its entire business.
The company operates four locations in Ottawa, part of 80 stores across the country that could close, along with three Saks Fifth Avenue stores and 13 Saks Off 5th locations.
The full liquidation could last for 12 weeks, biding time for the owners of Hair Republic, which has one location inside The Bay next to the Rideau Centre and Toronto’s Sherway Gardens.
“We were a little blindsided to say the least,” said founder Michelle Nguyen.
According to court documents, Hudson’s Bay owes close to $1 billion to landlords, suppliers and fashion companies, including more than $36,000 to Hair Republic.
“There was some writing on the walls,” said founder John Nguyen, reacting to the closure. “When they stopped playing music in the department store… and when they started being a bit more delayed on their payments was another big red flag.”
Court documents show Hudson’s Bay owes the owner of Bayshore Shopping Centre $202,867, Canada Post $1.4 million, Hydro Ottawa $401,962, Ottawa Police $2,892 and the City of Ottawa $148,478. It also owes Les Promenades Gatineau $564,876.
Earlier this month, the retail giant filed for creditor protection, citing changing consumer habits post pandemic, the rising cost of living and trade tensions with the U.S.
“I think we can also accept the fact that there has been a real lack of retail strategy at Hudson’s Bay as well and so put it all together and it brings us to where we are today,” said Canadian futurist, Doug Stephens.
Meanwhile, the more than 300-year-old company is still holding out hope it can drum up enough capital to keep at least some of its stores open.
“They either need someone to come to the table and offer them financing, which in this current environment is going to be difficult to find, or they need some other company,” said Stephens.
The Nguyen’s say they will be coming up with a plan for its two locations and 10 staff.
“We’ll continue business as usual for the month of March,” Nguyen said.
“We can continue to take appointments, but really [we will] have an action plan, concrete plan by April or May.”
