Cases, once filled with watches, sit empty. Some fragrance and beauty counters stand darkened while others show rows of remaining product waiting to be sold. Read more.
While the future of the Hudson’s Bay Company remains uncertain, its Langley location offered signs Monday that a store closure — and the end of a nationally known brand — could be near.
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Cases, once filled with watches, sit empty. Some fragrance and beauty counters are unstaffed, while others show rows of remaining product waiting to be sold.
“We haven’t received new stock for months,” a cosmetics counter employee could be heard telling a customer who was inquiring about a specific makeup shade.
In other areas of the store, more signals of an impending store closure are on display.
Certain fixtures, such as those found in jewelry sections, feature green inventory tags with barcodes. Others boast stickers with ‘DNI’ or do not inventory. Items tagged in such a way are typically not counted as a store assets or saleable goods.
Signs at an entrance of the store show there’s a ‘sale on now’ in the department store. Home goods such as furniture, bedding and decor are discounted up to 40 per cent off the regular price. A ‘spend more, save more’ incentive is also in place on women’s and men’s clothing and accessories on regular, clearance and sale prices.
Hudson’s Bay lawyers spent Monday in an Ontario court asking for permission to begin a liquidation of all of its 80 stores — 16 of which are in B.C. — as well as its Saks Fifth Avenue and Saks Off 5th stores as early as Tuesday. But a judge kept any decisions on hold for now while he considers the company’s case.
The retailer is still holding out hope for a lifeline and getting enough financing that would allow it to remove some stores from the liquidation process.
A lawyer representing employees argued against the liquidation, calling it a self-fulfilling prophecy that “seals the fate” of the company.
Shoppers in Langley, meanwhile, filed into the store to see just how good the discounts are right now.
“Nothing great,” said shopper Mette Lourdes, as she perused a rack of clearance clothing, a bundled bedding set tucked under her arm. “This is a good deal. But would it have been here either way? Probably.”
In the furniture department, shoppers can purchase items marked ‘Last One’ off the floor. Large home items marked on sale are still available for order, an associate noted, adding that she wasn’t sure about the status of delivery but that more information should be available by the end of the week.
Some departments, such as bedding and sleepwear, appeared well stocked with merchandise while areas like the lingerie department are left with a few standing racks and sparsely stocked display cases containing mostly discounted and clearance-priced bras and underwear.
When asked about the store’s situation, an employee said little information had been provided to staff.
“Everyone is waiting for an answer. It’s not just the customers.”
The main customer service desk upstairs held a steady stream of shoppers, many of whom held home goods like bedding, towels and sleepwear in their arms.
In the Stripes department, which is typically home to the famed Bay blankets, the shelf for the wool blankets was empty. “They’re gone,” an associate told an inquiring customer, adding all stock for the company’s in-house products had already been put out on the floor.
The company plans to stop accepting gift cards after April 6 and has already paused its loyalty program, with more than 8.2 million Canadians holding about $58.5 million in unused — now useless — points.
• Phase 1: Establishing a timeline of the sale and take inventory
• Phase 2: Kick-off of the liquidation sale with a goal of turning “assets into cash in a limited time”
• Phase 3: Discounting process including weekly or daily markdowns
• Phase 4: Strategic stocking to keep shelves full in high-traffic areas
• Phase 5: Final countdown where selling all remaining product is the goal, even at a loss
This local Hudson’s Bay location appears to be somewhere between the first and second phase.
The number of employees that stand to lose their jobs is 9,364.
“It’s sad, it’s really sad,” said Lourdes. “But, at the same time, I’m surprised that they hung on as long as they did. Considering all the other guys have been long gone.”
Founded in 1670, Hudson’s Bay was an icon in Canadian retail. Its colourful striped blankets have been keepsakes for many shoppers, while also being a hub for Canadian memorabilia throughout global events such as the Olympic Games.
The company admitted things were so bad, that it had deferred some payments to landlords, service providers and vendors, and was days away from being unable to meet payroll obligations. In Nova Scotia, one location was “unlawfully locked” by a landlord, while bailiffs attempted to seize merchandise from another location in Toronto.
With files from The Canadian Press