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ARTICLE · 02 APRIL 2025

CCAA Keeps Landlords At Bay

Daoust Vukovich LLP
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The insolvency of the Hudson's Bay Company ("HBC"), Canada's oldest corporation and iconic department store, is the most recent in a long list of fallen anchor tenants. In the last ten years.

CanadaReal Estate and Construction
Brian Parker
Brian Parker
Dylan Armstrong
Dylan Armstrong
Dylan Baker
Dylan Baker

The insolvency of the Hudson's Bay Company ("HBC"), Canada's oldest corporation and iconic department store, is the most recent in a long list of fallen anchor tenants. In the last ten years, Target, Sears, and Nordstrom have all disappeared from the Canadian market. Just like those tenants, HBC is utilizing the Companies' Creditors Arrangement Act ("CCAA") to address its dire financial circumstances. The CCAA is a flexible tool that has brought on a barrage of questions from HBC's landlords about what the process means for their shopping centres.

The CCAA Process

The CCAA is designed as a "reorganization" tool. Enacted during the depression of the 1930's, it was intended to provide a means by which insolvent entities (that is, entities that cannot pay their debts as they fall due) could shed certain liabilities and emerge as a (hopefully) viable entity. The CCAA provides a pathway to a Courtapproved plan, aimed at avoiding the harsh social and economic effects

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