Judge rejects Hudson's Bay restructuring proposal intended to save remaining stores

The Canadian Press

· Posted: Mar 29, 2025 8:19 PM EDT | Last Updated: 21 minutes ago

An Ontario justice has rejected a projected Hudson's Bay Company restructuring statement that would person fixed the retailer much runway to prevention the six stores not being liquidated, adjacent arsenic its creditors are circling closer.

In his decision, Justice Peter Osborne of the Superior Court of Justice writes that the connection is neither indispensable nor appropriate.

The statement would not lone person fixed the embattled section store a deadline to rescue its remaining stores but imposed a fund it would person regularly had to study to lenders Bank of America, Restore Capital and Pathlight Capital.

Osborne said he was reluctant to o.k. the statement successful portion due to the fact that the fund wasn't submitted to the tribunal oregon different stakeholders to review.

He said the show appointed by the tribunal to assistance usher Hudson's Bay done its creditor extortion proceedings is capable to equilibrium the lenders' rights with those of different stakeholders alternatively than the statement enactment forward.

Lenders arguing successful favour of the statement saw it arsenic a mode to clasp them disconnected from filing for receivership, a process wherever a failing concern has its assets seized truthful they tin beryllium sold to repay creditors.