Hudson’s Bay Company began liquidation sales on Monday, while temporarily excluding six stores from the initial process.
Hudson’s Bay receives court approval for revised liquidation plan, excludes 6 locations. – Hudson’s Bay
The Canadian retailer received court approval on Friday to move forward with a revised liquidation plan as part of its ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings.
For the time being the Downtown Queen Street location at 176 Yonge Street in Toronto, Yorkdale Shopping Center in Toronto, Hillcrest Mall in Richmond Hill, the Downtown Montreal location, Carrefour Laval in Laval, and the Pointe-Claire store in Quebec, will remain open.
The revised plan was strengthened by stronger-than-expected sales over the past week, which exceeded projections and provided Hudson’s Bay with the flexibility to continue operations at the six exempted locations while exploring restructuring options.
The decision allows Hudson’s Bay additional time to collaborate with key landlords and stakeholders in an effort to restructure its business.
“Canadians have shown extraordinary support for Hudson’s Bay over the last two weeks and overwhelmed us with their encouragement and endearment for the brand. We are extremely fortunate to have such an engaged community behind us,” said Liz Rodbell, president and CEO of Hudson’s Bay.
“Our associates have been met with extraordinary kindness from our customers—each of whom reflects the cherished relationships we have built together over generations.”
Once the liquidation sales begin, all transactions will be final. Gift cards will be accepted until April 6. Meanwhile, the firm’s online site will continue normal operations.
In addition to the liquidation plan, the court also granted Hudson’s Bay authority to repay its debtor-in-possession financing provided by Restore Capital, an affiliate of Hilco Global, along with other lenders.
Furthermore, the company has received approval to initiate a sale and investment solicitation process (SISP) and a lease monetization process, which are designed to maximize value for stakeholders. The SISP will explore potential strategic investments, partnerships, or sales, while the lease monetization process aims to unlock value from the Company’s lease portfolio.
The company will release further details regarding store closures, final sales events, and customer accommodations in the coming weeks, it said.
In a major strategic change, Dsquared2 has ended its long-time licensing agreement with Staff International, the key operating company of Italian fashion billionaire Renzo Rosso, who, in turn, has already sued the designers in response.
Dean and Dan Caten – Giampaolo Sgura
However, six hours after DSquared2 announced the termination of its long-time licensing agreement with Staff International, the licensee sued the fashion house for breach of contract. The conflicting statements suggest that this issue looks like becoming a major court battle pitting one of Italy’s largest fashion empires against one of Milan’s hottest runway brands.
“Dsquared2 Group announces the immediate termination of its licensing agreement with Staff International S.p.A. Consequently, the group will assume direct control over the production and distribution of its ready-to-wear collections,” the Milan-based house said in a terse release Saturday lunchtime.
“This transition takes effect immediately and will commence with the upcoming pre-collection Spring/Summer 2026 sales campaign,” added Dsquared2, which was founded by twin brothers Dean and Dan Caten over three decades ago.
Staff International is the key production wing of Only The Brave, the holding company of Rosso, which also owns Diesel, Marni, Maison Margiela and Jil Sander, as well as the manufacturing license of Viktor&Rolf.
“Dsquared2 Group expresses its sincere gratitude to all those who have contributed to this collaboration and looks forward to fostering continued partnerships in the future,” the release added.
However, later Saturday, Rosso’s group responded forcefully: “Staff International reiterates its conviction that the license agreement is fully effective and confirms its intention to fully execute it until its natural expiry. Therefore, the company firmly rejects any possibility of early termination of the contractual relationship, and believes that legal conditions for early termination do not exist.”
The agreement with Staff International – which is said to last 25 years – dates back to 2002, and helped fuel the spectacular development of Dsquared2, the last runway label in Milan to have grown into a major global fashion brand.
Born in Willowdale, Ontario, Dean and Dan Caten (Catenacci, originally) began their career path in fashion by moving to New York in 1983 to attend Parsons School of Design. In 1991, they arrived in Italy where in 1994, after numerous collaborations with major fashion houses, they first staged their debut runway collection. It marked the first in a long line of runway extravaganzas that would capture the attention of journalists and buyers for their unique blend of fashion, music and theatre.
The Catens went on to build a multi-million dollar business. And to dress everyone from Madonna in her iconic western video clip, “Don’t Tell Me”, to Beyoncé for her Super Bowl performance. The duo also has an impressive range, all the way to dressing the four-time English Premiership Champions, Manchester City. And a great HQ, a former electric energy headquarters converted into office, show-space, inn, gym and rooftop restaurant with swimming pool. They have become one of the city’s great fashion institutions without ever losing the DNA of the Wild North. And famed for their ovations, where they take their bow in matching outfits – whether disco dragoons, Klondike trappers or matinee idols.
Leave it to the Canadian duo to stage an epic 30th anniversary show in Milan this past season, the cast marching out of a wrecked brick garage, or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce – all took turns arriving in the huge warehouse done up like a nightclub.
All of the Caten’s great archetypes got an outing. Mad saucy trapper girls in giant puffers and lots of legs; a trio of rockers with Kiss goth makeup but in three-piece suits; Klondike gold diggers off to an all-night rave; sexy vampy rock goddesses with bumster leather pants and fur coats with trains; and a beautiful black rodeo gal with mini cocktail made of bands of Western belts. Leading to the arrival with sirens of a NYC police car, from which emerged a dominatrix leather police captain played by Brigitte Nielsen escorting two white collar criminals. You guessed it – Dean and Dan. Before, amid huge roars, JT and Doechii took the floor in a call-and-response duet surrounded by the entire cast.
Renzo Rosso’s fashion holding company OTB suffered a setback in 2024, seeing revenues fall 4.4 percent at constant exchange rates to 1.8 billion euros, recording EBITDA of 276 million euros and EBIT of 44 million euros. Retail (+7.4 percent), Japan (+16.3 percent) and North America (+13.3 percent) held up. Among the brands in the portfolio, Maison Margiela (+4.6 percent) and Diesel (+3.2 percent) performed positively.
In the past fiscal year, the Vicenza-based company sustained investments of 77 million euros, with a focus on the expansion of the retail network and major innovation projects.
The possible departure of DSquared2 will be seen as a setback for Rosso, who has long praised the brand as a dynamic creative force. Like every season, Rosso sat front row at the 30th anniversary show in Milan on February 25.
“Staff International will continue to act with the utmost transparency and determination to protect its rights, honour its contractual commitments and safeguard its reputation, and reserves the right to take any further action,” read the last paragraph in Rosso’s company statement.
Lululemon Athletica shares fell nearly 13% in premarket trading on Friday, after the sportswear maker provided downbeat annual forecasts as the broader apparel space battles an uneven consumer demand environment.
Reuters
The company, during its fourth-quarter earnings on Thursday, flagged that consumers were spending less due to increased concerns about inflation and the economy.
Lululemon joins a list of retailers rattled by uncertainty around U.S. President Donald Trump‘s erratic tariff decisions, which have shaken consumer confidence that was already weak with Americans being careful about shelling out more dollars on everything from groceries to nice-to-have items amid still-high inflation.
The company has also been losing market share to upstarts Alo Yoga and Vuori as it takes longer to rebuild its brand image despite launching a wide array of new clothing.
“Increased newness (is) not enough to offset macro-related slowdown,” Needham analyst Tom Nikic said in a note.
According to Piper Sandler analysts, the debate continues to be whether the real issue is brand maturity and saturation in a competitive market for Lululemon.
Some analysts said there is a growing consumer enthusiasm for Lululemon’s Glow Up tank tops and Daydrift high-rise trousers, but an uncertain environment dims hopes of a rebound in demand soon. “We started this year with several compelling new product launches, but we also believe the dynamic macro environment has contributed to a more cautious consumer,” CEO Calvin McDonald said on Thursday.
Lululemon’s forward price-to-earnings ratio for the next 12 months — a benchmark for valuing stocks — was 21.92, compared with 31.51 for Nike and 25.67 for Adidas.
“Newness restored, but not guaranteed to save current deceleration in growth,” said Jefferies analyst Randal Konik, adding that the theme still remains about growth fading.
Lululemon’s shares were trading at $299 before the bell. They had fallen more than 25% in 2024.
PayPal shares fell 4% on Friday after comments from a European Union lawmaker raised concerns that payments firms could get swept up in escalating U.S.-Europe trade tensions and potential tariffs. Uncertainty over tariffs and mounting trade actions have unsettled global markets, causing volatility, straining supply chains and shifting investor sentiment across industries.
Reuters
Earlier this week, U.S. President Donald Trump said larger tariffs could be placed on the European Union and Canada if they both work together “to do economic harm to the USA”.
“In the case of digital service providers, there is also a huge economic interest on the part of U.S. companies,” said Bernd Lange, the head of the European Parliament’s international trade committee. “In this respect, you can also look at charging fees on PayPal or Google.”
If imposed, the measures would pose a new challenge for the payments sector, which is typically shielded from tariffs as it does not depend on trade of physical goods.
Separately on Friday, a German government spokesperson also said “nothing is off the table” with regards to punitive measures in response to the threat of U.S. tariffs.
Entertainment8 years ago