Ontario court extends Hudson’s Bay’s reprieve from creditors

An Ontario court has extended the reprieve Hudson’s Bay has from creditors.

Judge Jessica Kimmel has pushed the end of the collapsed retailer’s stay to June 30. Before the extension, it was due to expire on March 31.

A stay is a common part of creditor protection hearings. It prevents people from filing new lawsuits against a company or trying to recover debts from the firm.

HBC lawyer Ashley Taylor told Kimmel the extended stay period will allow the retailer to assist with ongoing auctions of the company’s art and artifacts and the distribution of hardship funds to former staff, as well as prepare for a likely future court hearing meant to address a pension surplus.

HBC’s stay started last March, when the company filed for creditor protection with $1.1 billion in debt.

It’s since been extended several times as the company has worked to close its stores, sell and relinquish leases and auction off its 4,400 pieces of art and artifacts.