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HUDSON BAY COMPANY NEWS 2017: JOB CUTS

Hudson Bay Company news 2017: Introduction

On May 24, 2017, we wrote our blog RETAIL BANKRUPTCY WATCH LIST: WHAT THIS 102 YEAR OLD TEACHES US ABOUT RETAILING. This was the tale of Ingledew’s, a 102-year-old Vancouver shoe shop chain that declared bankruptcy. There is one most compelling of all the retail bankruptcy problems today. That is the consistent consumer practice of identifying the item in bricks-and-mortar stores and after that getting it online from other shops. There are others on the retail bankruptcy watch listing for the same factors. The Hudsons Bay Company news 2017 is cutting 2,000 positions.

Hudson Bay Company news 2017: Current status

The Bay is losing cash. After a difficult 3rd quarter 2016, HBC was seeking to cut expenses as the seller’s shares were at their lowest point yet since going public for a second time in 2012. CEO Jerry Storch claimed at that time that HBC is eager to focus on searching for “non-customer facing” effectiveness after the company reported a wider loss than expected.

At that time, the reported reasons for the losses were expenses being too high and a 4% dip in sales at stores open for greater than a year. Jerry Storch pointed out weak point in women’s clothing as well as high-end retail. Certainly, those initiatives alone were inadequate. The losses at HBC proceeded and now they are cutting jobs that are “customer facing”.

HBC revealed last Thursday it is getting rid of 2,000 employees throughout North America to help balance out different difficulties it’s dealing with within the retail sector. One of the central issues facing large retailers is that they must close stores with the arrival of on the internet shopping.

Established in 1670, HBC, is the oldest business in North America and one of the eight oldest companies in the world. It uses greater than 66,000 people. It runs greater than 480 stores under banners such as The Bay, Saks Fifth Avenue, Lord & Taylor, Gilt, and Saks Off 5th.3bestaward

Hudson Bay Company news 2017: Hudson Bay earnings 1st quarter 2017

On June 8, 2017, HBC reported that the 1st quarter 2017 was a rough one. The retail clothing market remains challenging.HBC must adapt, beginning with a reorganization plan. Richard Baker, HBC’s Governor and Executive Chairman, said that the reorg plan will reshape HBC improving its costs.

His explanation of HBC’s restructuring will look not only at job cuts, but also its real estate assets and its diverse retail businesses.

Hudson Bay Company news 2017: Cost savings expected

The retail giant said the layoffs should save $350 million annually when the plan is fully implemented by end of financial 2018. A few of the layoffs were before introduced in February, the firm claimed.

Hudson Bay Company news 2017: It isn’t only HBC

This is the same tale that’s impacting a lot of big-box retailers today. Cash that used to be spent during a visit to The Bay, Sears and other big names like that; it’s going mainly to the web. Amazon is the main beneficiary, so you’re seeing these big-box retailers rushing to attempt and keep up. They’re reducing expenses to attempt to stem the losses. HBC’s stock is down 27% this year.

“As we have developed our plan, we have been determined to become not just a leaner company but also a better one” says Jerry Storch. Some industry experts have examined whether there is more value to leverage from HBC’s important realty profile. HBC has understood this to a degree with sale leaseback and joint venture arrangements.

In the case of Ingledew’s, the factors mentioned for the bankruptcy was that prices and financial obligation climbed due to:

  1. the lease prices paid to shopping mall property owners for rental fee;
  2. the amount of loan it took to open these gorgeous new stores; and
  3. the wages paid to get as well as maintain excellent people to be educated, deal with the consumer well and properly stand for the firm.

In the United States, there are annoying earnings records also from JC Penney, Macy’s, along with Nordstrom. This is against a backdrop of general distress in the retail market. Retailers are shutting shops and businesses applying for Chapter 11 in 2017. In the very first 4 months of 2017 filings have gone to a rate not seen since that the last recession.

Hudson Bay Company news 2017: What Moody’s has to say about Hudson Bay Company financial trouble

Twenty-two retailers in Moody’s portfolio are in severe financial trouble that might bring about bankruptcy. That’s 16% of the 148 firms in the financial company’s retail portfolio. This overshadows the level of seriously troubled retail firms that Moody’s reported during the Great Recession.

Hudson Bay Company news 2017: What about you?

Are you unhappy about the direction your debts are taking you? Do you or your company not have enough cash flow to make it through another season? Is the stress of too much debt affecting your health and life? Do you need a restructuring plan?

Call us now for a free consultation. The Ira Smith Team can help you sort through all the issues. We will create a plan to get you back on the road to financial health. Many times, we can avoid bankruptcy, using one of the various bankruptcy alternatives. Call us today so we can help you get your life back, Starting Over, Starting Now.

UPDATE: CHECK OUT OUR NEW VLOG BY CLICKING ON:

SEARS CANADA IS CLOSING: THE #1 REASON YOU HAVE TO RUN AND NOT JUST WALK TO REDEEM YOUR GIFT CARDS AND CREDITS

HUDSON’S BAY COMPANY NEWS 2017 13

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Brandon Blog Post

RETAIL BANKRUPTCY WATCH LIST: WHAT THIS 102 YEAR OLD TEACHES US ABOUT RETAILING

Retail bankruptcy watch list: Introduction

Metro Vancouver’s high rental fees and salaries for skilled retail staff aided the demise of the 102-year-old shoe-store chain Ingledew’s. Ingledew’s is the latest retailer in Canada to become bankrupt. One of the most compelling of all the retail bankruptcy issues today, is the constant customer practice of identifying the product in bricks-and-mortar shops and then after buying online from other stores. There are others on the retail bankruptcy watch list for the same reasons.

Retail bankruptcy watch list: And what about the future of our malls?

“I worry that the shopping mall that we understand so well today, in as several as five to 10 years, will be totally different,” he informed Business in Vancouver. He predicts a slew of stores having a hard time and landlords clambering to find new methods to attract consumers.

Ingledew stated that costs and debt rose because of:

  • the amount of money it took to open these gorgeous new shops;
  • the lease rates paid to mall property owners for rent; and,
  • the wages paid to get and retain excellent people to be knowledgeable, treat the consumer well and properly represent the company.

He further stated that the costs were far overtaking any type of gains being seen in sales in stores.

These pressures, particularly the fad of buyers dealing with physical shops as display rooms, has Ingledew being afraid that there will be an earthquake of adjustment can be found in the retail industry in the next years.

Retail bankruptcy watch list: It is a North American issue

North American merchants are shutting greater than 3,600 stores this year to stanch losses. Retailers are also declaring bankruptcy at a staggering rate. Wal-Mart is now consuming their shed market share, according to Moody’s expert Charlie O’Shea.

He and a green bay bankruptcy lawyer debated at length with Ingledew and they agreed, nonetheless, that retail is quickly developing and stated the ultra-competitive shoe retail industry specifically is undertaking significant change.

Oxford Properties, for instance, wishes to increase the measure of area dedicated to food and drink sales in its shopping centers– to around 20% from 9%. Other shopping centers are increasingly having art exhibitions, Lego demos and various other demonstrations and events to draw consumers.

In the United States, there are frustrating earnings reports from JC Penney, Macy’s, as well as Nordstrom, against a backdrop of overall distress in the retail market marked by sliding sales and traffic. Retailers are shutting shops and companies filing for Chapter 11 in 2017 in the first 4 months of 2017 are at a rate not seen since the last recession.

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Retail bankruptcy watch list: Wal-Mart is investing online

However, it is not just Amazon that is the beneficiary of the distress in the brick and mortar retail environment. There is one major traditional retailer that is crushing it. Wal-Mart recently reported that e-commerce sales rose by 63% in its latest quarter, compared to 29% growth the previous quarter. The firm stated most of these sales were natural via Wal*Mart.com.

“We delivered a solid first quarter and we’re encouraged by the start to the year,” WalMart CEO Doug McMillon said. “We’re moving faster to combine our digital and physical assets to make shopping simple and easy for customers. Our plan is gaining traction.”

Wal-Mart’s $3 billion procurement of the online merchant Jet.com additionally aided the firm boost shopping sales. Wal-Mart also got the Shoes.com domain and is utilizing it to advertise shoes from its Shoebuy.com Inc. subsidiary, which Wal-Mart got in January, simply a few weeks before Shoes.com ceased operating.

Retail bankruptcy watch list: Walmart’s growth is not just online

But Wal-Mart’s development isn’t all online. The firm stated sales at US stores open at the very least for a year, or same-store sales, grew by 1.4%, defeating analyst expectations of 1.3% and also marking the 10th consecutive quarter of same-store sales growth.

Retail bankruptcy watch list: What does your future look like?

Are you unhappy about the direction your debts are taking you? Is shopping putting you into financial ruin? Do you or your company not have enough cash flow to make it through another season? Is the stress of too much debt affecting your health and life?

Call us now for a free consultation. The Ira Smith Team can help you sort through all the issues. We will create a plan to get you back on the road to financial health. Many times, we can avoid bankruptcy, using one of the various bankruptcy alternatives. Call us today so we can help you get your life back, Starting Over, Starting Now.retail bankruptcy watch list 11

Call a Trustee Now!