Hudson’s Bay Company ULC, the Canadian department store operator, announced on Friday it has filed for creditor protection with a Canadian court, and revealed plans to restructure its business.
Hudson’s Bay
The Toronto-based retailer said it has commenced proceedings under the Companies’ Creditors Arrangement Act (CCAA) pursuant to an initial order for creditor protection from the Ontario Superior Court of Justice.
The company said it is exploring strategic alternatives and is exploring potential solutions to strengthen its business.
Restore Capital, LLC, an affiliate of Hilco Global, together with other lenders, will provide interim debtor-in-possession financing to finance Hudson’s Bay’s operations in the lead up to the “comeback motion” hearing, with a CAD$16 million advance already approved.
Hudson’s Bay will be seeking additional financing to fund its operations during the CCAA proceedings, the company said, adding that the money enables it to keep operating for 10 days, at which time it must present a restructuring plan to the court or request an extension.
“Hudson’s Bay has been a vital retailer to Canadians for generations, and this decision was made with the best interests of our customers, associates and partners in mind,” said Liz Rodbell, president and CEO of Hudson’s Bay.
“While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape, despite the sector-wide challenges that have forced other retailers to exit the market. Now more than ever, it is critical that Canadian businesses are protected and positioned to succeed.
“Earlier this year, we worked with potential investors to refinance a portion of our credit facilities to improve our liquidity and support our business plan. However, the threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions.”
The company attributed its financial hardships to ongoing trade tensions with the U.S., including the new tariffs on exports to the U.S.; post-pandemic shifts, including changes in Canada’s corporate culture resulting from work-from-home policies; and economic headwinds, including the rising costs of living, higher mortgage rates, and a weakening Canadian dollar.
Hudson’s Bay operates 80 stores, with store closures expected as a result of the restructuring plan. The company has a small footprint of Canadian Saks Fifth Avenue and Canadian Saks Off 5th stores, which it said will continue to operate.
Alvarez & Marsal Canada Inc. has been appointed as the monitor to oversee the CCAA proceedings.
Selfridges continues to be the launchpad of choice for many luxury brands, particularly those planning something eye-catching or out of the ordinary.
Sergio Tacchini
And this season, Sergio Tacchini is celebrating its SS25 collection launch at the retailer’s London flagship by wrapping its DeLorean car in black velour and a print inspired by the brand’s Slice Track Jacket.
The design blends the brand’s heritage with new designs, focusing attention the label’s “timeless aesthetic within sportswear”.
Beyond the jacket, the collection features other reimagined classics alongside Selfridges exclusive pieces, including printed shirts and cotton jackets with bold prints.
The brand said the launch at the store (and on Selfridges’ webstore) “reinforces Sergio Tacchini’s commitment to blending retro inspiration with contemporary style”.
It’s an ongoing link between the label and the retailer and it’s not the first time Sergio Tacchini has opened a pop-up there.
Back in summer 2023, it opened a tennis-themed pop-up, dubbed Causing a Racquet. It went for a mix of tennis and Italian references with marble-effect oversized tennis rackets, tennis balls, Roman statues, and broken columns creating a ‘Roman ruins’ atmosphere.
The almost-60-year-old company, which was previously owned by American funds Twin Lakes Capital and B Riley Principal Investments, became part of the business empire of billionaire Kim Chang-Soo in summer 2022, via his South Korean clothing group F&F Holdings.
Quintessentially French label Carven has selected another Briton to be its new design director with Mark Thomas having stepped into the seat left vacant when Louis Trotter left to take the helm at Bottega Veneta in January.
Carven
Thomas, who was trained at Central Saint Martins and Ravensbourne, has been promoted from within by Icicle, the China-based parent company of Carven.
He’s been senior designer at Carven since 2023 and before that spent almost four years in a senior menswear role at another major French label, Lacoste, also working with Trotter.
He’s also been creative director at Helmut Lang, based in New York and was head menswear designer at Joseph in the mid 2010s. Before that he was at Givenchy, and earlier in his career also worked at Neil Barrett and Burberry.
Trotter clearly thought highly of him but it’s interesting that with his strong menswear focus, he’ll be creatively directing a label best known for its womenswear.
It’s one that enjoyed a higher profile under Trotter even though she had only three seasons to reshape it before taking up with coveted Bottega Veneta role.
Despite the absence of a creative chief, Carven showed its AW25 offer, which Thomas has largely been responsible for, in Paris this season. But the first full collection under his direct control will be for SS26 during PFW this autumn.
Carven was founded in 1945 by Marie-Louise Carven-Grog and relaunched by Henri Sebaoun who had bought it in 2008. It enjoyed a high profile under the creative control of Guillaume Henry from 2009 to 2014 but struggled later before its purchase by Icicle. The Chinese firm has invested in it and reopened on its historic address, the Champs-Elysées, in 2021.
Turnover has been growing for the business under CEO Shawna Tao but the latest year for which accounts are available (FY23) saw it with a loss of over €7 million on turnover a little over €15 million.
Gap Inc. soared after strong quarterly sales showed that Chief Executive Officer Richard Dickson’s turnaround playbook is working.
Gap x Cult Gaia
The retailer exceeded analyst estimates for comparable sales, led by better-than-expected results at the namesake brand, Old Navy and Banana Republic. Athleta, the struggling athleisure brand, posted an unexpected decline.
Gap shares surged 17% in trading before US markets opened on Friday. The stock had fallen 18% this year through Thursday’s close.
The performance of Gap’s namesake brand was “particularly impressive,” Paul Lejuez, an analyst for Citi wrote in a research note. The unit’s comparable sales rose 7%, topping Wall Street’s prediction for an average gain of 1.7%. This performance suggests it’s resonating with consumers, he said.
Under Dickson, the company has leaned into celebrity partnerships and is refreshing its leadership roster, including appointing fashion designer Zac Posen as creative director.
Gap sees revenue flat to up slightly in the current quarter. Analysts surveyed by Bloomberg were looking for 1% growth, on average. For the full year, Gap forecasts revenue will be up as much as 2%.
The retailer included 20% tariffs on China and 25% tariffs on Canada and Mexico in its forecast. Less than 10% of Gap products are sourced from China and less than 1% are from Canada and Mexico combined, Dickson said in an interview with Bloomberg News.
“It’s important to note we’ve been operating in a highly dynamic backdrop for the last few years, and we’re expecting the same for 2025,” Dickson said.