MASS closure notices across a slew of stores have sparked bankruptcy fears for a major retailer. It comes as Canadian customers of the retailer Hudson's Bay say the reason given for the temporary closures is "unlikely." Signs across numerous locations told customers that the stores were "closed due to system issues.
" "The current heat wave has caused a strain on HVAC systems in certain Hudson's Bay locations," a company spokesperson told CBC News. "The comfort and well-being of customers and associates remains our top priority," they said before adding that work is being done as quickly as possible to reopen doors. Shuttered locations include sites in Vancouver, West Vancouver, Winnipeg, and Ontario as areas of Canada reached 104F this week.
However, retail officials and customers have seen this as a potential sign of another struggling retailer amid a retail apocalypse of shuttering and bankrupt businesses. Retail analyst Bruce Winder claimed that the latest issues could be a sign of reduced spending with the company potentially "fraying at the edges" behind the scenes. "This is often the case with companies that have a hard time bringing people in, have a hard time selling things — They're in a bit of a downward spiral," he told CBC.
"You start to see things fray at the edges a little." Despite one of the stores in Windsor, Ontario finally re-opening this week after a month of being closed due to air conditioning repairs, another retail official has warned that the situation is "not normal." "It is definitely not normal," Liza Amlani, the principal of the Retail Strategy Group told the Financial Post on Thursday.
"They thought (temporarily) closing stores would be more cost-effective than bringing someone in to fix the problems and making some sales," she claimed. "That tells me that certain stores at the Bay are struggling." Meanwhile, customers have taken to social media amid the closures to complain about stores being failed by bosses at the department store chain.
"Both escalators have been broken for *years* at our local store," one shopper said in the comments to a Facebook post. "There are smashed showcases and there is a smell of mildew in the air. Store hasn't been renovated in 20 years.
" "This goes deeper than broken escalators and A/C...
Online shopping, inventory selection, and terrible customer service are just a few of the problems plaguing this company. Honestly, I'll be surprised if they make it to 2025," another added. One shopper said that her area has lost two of its three locations and claimed that the remaining store is "probably 'on a ventilator.
'" Others expressed their doubts about the reason given for the temporary closures. "Seems unlikely that several store locations would have HVAC issues simultaneously," One said. Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay.
Here are a list of stores that have recently decalred themselves bankrupt: "Obviously they're going out of business or something lol, there's no way the entire country has HVAC issues. Give me a break," another noted. "It’s been almost 2 weeks now and how are they all having HVAC issues when they all have different store locations?" a third asked.
However, despite concerns, Hudson's Bay Company, the owner of Saks Fifth Avenue, confirmed its acquisition of Neiman Marcus Group last week. The deal will "establish Saks Global, a combination of world-class luxury retail and real estate assets, including Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, each of which will continue under their respective brands," HBC confirmed in a press release. The Canadian portion of the business "will be recapitalized as a standalone entity, separate from Saks Global, with significantly reduced leverage and enhanced liquidity," the company stated.
"HBC will continue to wholly own its Canadian retail and real estate assets, including Hudson’s Bay, which operates TheBay.com and the Hudson’s Bay network of stores, as well as a CAD$2 billion real estate portfolio. "As a result, HBC’s Canadian business will be well positioned to support future growth, while continuing to serve its loyal Canadian customer base.
" The U.S. Sun has contacted Hudson's Bay for comment.
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