Hudson’s Bay wants court to OK agreement that offers it a few extra days to save 6 stores
Hudson’s Bay asked an Ontario Court Wednesday to approve a renovation agreement that will give him some more time sequence to save the six shops that has saved the liquidation so far.
A new version of the agreement will force the dealer to start liquidating those shops on April 8 – if since then he has not found a probable transaction to reimburse part of what his protected credit institutions, Bank of America, Pathlight Capital and Restore Capital – only three days after the deadline that has originally asked.
Ashley Taylor, a lawyer for Hudson’s Bay, told the judge of the Superior Corte of Ontario Peter Osborne that the agreement was not “a very satisfactory result”.
It was not exactly what the department store also wanted, it reasoned, but it was the best arrangement he could find.
“The company wanted more shops. The company wanted more time. The company wanted more latitude,” said Taylor.
The request for approval by Hudson Bay on the renovation agreement arrives when most of its 80 stores, 13 Saks out of fifth offices and three Saks Fifth Avenue stores entered the sale of liquidation this week.
Last week, strong sales allowed the company to temporarily save its top position in Toronto in Yonge Street, a shop in the city shopping center in the city and another at the Hillcrest Mall in Richmond Hill, Ontario. The remaining three survivors are located in the area of the center of Montreal, Carrefour Laval Mall and Pointe-Claire, Que.
The liquidation that occurs in the rest of the shops of Hudson’s Bay is part of a case of protection of creditors that the company began at the beginning of March, when he said that he was facing financial difficulties that were so significant as to threaten the society’s ability to continue working.
Buyers are climbing to collect Hudson’s Bay’s memorabilia after the company has won the approval to start liquidation sales, except six stores next week. The flagship store in the center of Toronto is among the survivors.
Some parties involved in judicial proceedings oppose Hudson Bay’s request to approve the renovation support agreement.
One of these parts is the trust of Riocan’s real estate investments, which has a joint venture with Hudson’s Bay who sees them possess or co -owner 12 properties together.
A motion that presented maintains that the expiry of the early April of the renovation agreement is in contrast to another trial approved by the Court on Friday to facilitate the search for potential investors or buyers for parts of the company.
That exercise, known as the process of soliciting sales and investment, asks the potential buyers interested in having some of the companies to make offers by April 30, a motion presented by the lawyers of Riocan Robert Chadwick, Joseph Pasquariello and Andrew Hormles.
Since the “conflicts”, the lawyers say that the approval of the renovation agreement “would limit any possibility that HBC has” to find a way to follow.
“HBC and its stakeholders deserve the advantage of the opportunity to explore all the reasonable opportunities to find a renovation solution that maximizes the value compared to a forced liquidation”, say Riocan’s lawyers.
