MASS closure notices at a number of stores have sparked fears of bankruptcy at a major retailer.
It turns out Canadian customers of retailer Hudson’s Bay say the reason given for the temporary closures is “unlikely.”
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Signs in several locations informed customers that stores were “closed due to system problems.”
“The current heat wave has caused pressure on HVAC systems in certain Hudson Bay locations,” a company spokesperson said. CBC News.
“The comfort and well-being of customers and associates continues to be our top priority,” they stated before adding that work is being carried out as quickly as possible to reopen the doors.
‘DESCENDING SPIRAL’
The closed locations include locations in Vancouver, West Vancouver, Winnipeg and Ontario, as areas of Canada reached 104F this week.
However, retail officials and customers took this as a potential sign of another struggling retailer in the midst of a retail apocalypse of closed and bankrupt businesses.
Retail analyst Bruce Winder said the latest problems could be a sign of reduced spending, with the company potentially “wearing out” behind the scenes.
“That’s often the case with companies that have a hard time attracting people, have a hard time selling things — they’re in a downward spiral,” he told CBC.
“You start to see things fraying a little bit around the edges.”
Despite one of the stores in Windsor, Ontario finally reopening this week after a month of being closed due to air conditioning repairs, another retail employee warned the situation is “not normal.”
“It’s definitely not normal,” Liza Amlani, director of Retail Strategy Group, told Financial Post On thursday.
“They thought closing stores (temporarily) would be more cost-effective than bringing in someone to fix the problems and make some sales,” she said.
“That tells me that certain stores in the Bay are struggling.”
Meanwhile, customers have taken to social media amid the closures to complain about store failures by bosses at the department store chain.
DEEPER QUESTION
“Both escalators have been broken for *years* at our local store,” said one customer he said in the comments of a Facebook post.
“There are broken windows and there is a musty smell in the air. The store hasn’t been renovated in 20 years.”
“This goes deeper than escalators and broken air conditioners… Online shopping, inventory selection, and terrible customer service are just some of the problems plaguing this company. Honestly, I’ll be surprised if they make it to 2025. ” another added.
One shopper said her area lost two of its three locations and said the remaining store “is probably ‘on a ventilator.'”
Others expressed their doubts about the reason given for the temporary closures.
“It seems unlikely that multiple store locations would experience HVAC issues simultaneously,” One said.
CHAINS FACING BANKRUPTCY
Bankruptcy is a specific legal process that helps businesses eliminate debts they cannot pay. Here is a list of stores that have recently declared bankruptcy:
“Obviously they’re closing or something haha, there’s no way the entire country has HVAC issues. observed.
“It’s been almost two weeks and how are they all having HVAC issues when they all have different stores?” a third asked.
However, despite the concerns, Saks Fifth Avenue owner Hudson’s Bay Company 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,” confirmed the HBC. on a Press release.
The Canadian portion of the business “will be recapitalized as a stand-alone entity, separate from Saks Global, with significantly reduced leverage and increased liquidity,” the company said.
“HBC will continue to fully own its Canadian real estate and retail assets, including Hudson’s Bay, which operates TheBay.com and the Hudson’s Bay chain 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 US Sun has reached out to Hudson Bay for comment.
This story originally appeared on The-sun.com read the full story
