Doors locked at The Bay in Coquitlam after rent default in latest blow for HBC
The Hudson's Bay Company store in Coquitlam, B.C., closed its doors to customers on Sunday after its landlord said the company had defaulted on its rent.
It's the latest blow to HBC, which has operated in Canada since the late 17th century. The company has struggled to pay its bills in other parts of the country, as well.
Still, the closure of store in the Coquitlam Centre Mall came as a surprise to many shoppers who arrived to pull on locked doors.
"Pretty shocking ... The Bay has been around since what?" said Annette Borrows.
Retail analysts say the store closure is a sign of mounting revenue losses across the industry amid the pandemic.
"We've seen Hudson's Bay Company really trying to stay relevant, and it's tough," said David Ian Gray with retail consultancy DIG360. "And they've been struggling with that pre-COVID."
In October, HBC announced plans to close its flagship store in Winnipeg in February. The company has operated out of the six-storey building at the corner of Portage and Memorial for nearly a century.
At the time, the company said changes in consumer behaviour, such as shopping online, was one reason for walking away from the landmark site.
Earlier this month, a judge in Ontario ordered HBC to pay half the rent owing at one of its stores after a landlord attempted to evict the retailer. The store at Hillcrest Mall in Richmond Hill, Ont., owed seven months of rent.
Gray says the pandemic has accelerated HBC's financial troubles.
"What's happening is that retailers, in particular non-essentials, especially fashion, have just been decimated," he said.
"It's not Hudson's Bay Company, but all of them. We're not buying as much fashion, but also we're really restricted on closures, openings."
In Coquitlam, HBC's landlord, Pensionfund Realty Limited, posted a sign on the store that said it hadn't received payment for more than a month.
In a statement, HBC said it's looking for a fair solution with its landlords across North America.
