Happy Belly Food Group Inc., a leader in acquiring and scaling emerging food brands across Canada, has signed a real estate location for its first Quebec franchisee within the vicinity of Montreal’s West Island at Galerie des Sources located at 3237 des Sources Blvd., Dollard-des-Ormeaux, Quebec.
“Yolks Breakfast is a boutique restaurant brand serving delicious breakfast, brunch and lunch,” said the company in a news release.
Sean Black
“The news today was over 1 year in the making, so it is really great to see that work pay off. I spent my early days growing up in the Province of Quebec, so this is a very special day for me as we expand our 1st of many brands into the province of Quebec. I was even able to spend time in Quebec during my time at MTY Food Group, so I know how much the people of Quebec appreciate their breakfast and brunch,” said Sean Black, Chief Executive Officer of Happy Belly. “Which is why today is such a significant milestone for Happy Belly as we sign our first franchised real-estate location in Quebec, expanding our national franchising program to four (4) operational provinces across Canada. We are incredibly proud of our Yolks partners on both the operational and area development (“AD”) side.
“Establishing our presence in Quebec affirms that our accelerated franchising program and business model are well-suited for our emerging brands, as demonstrated by our organic growth across the portfolio. With franchise agreements now in place in British Columbia, Alberta, Ontario, and Quebec, and 51-units contractually committed with area developers for Yolks, we show no signs of slowing down.
“As the breakfast category remains one of the hottest and fastest-growing sectors in the restaurant industry, we are maintaining our momentum and aggressive approach. Our asset-light strategy continues to attract significant interest and inquiries from potential franchisees. As progress unfolds, we look forward to sharing details about our initial real estate locations. Our overarching strategy has consistently focused on developing and growing emerging brands within the food sector. With the continued rollout of our franchising initiative, we anticipate these new locations will significantly contribute to the company’s revenue and profitability.
Source: Happy Belly Food Group
“Today’s announcement marks another executed step forward in our expansion strategy for Yolks as we continue to incorporate our breakfast brand into our accelerated franchising. We look forward to continuing to execute on our franchising model as we accelerate our growth organically and inorganically through accretive M&A. Happy Belly has 521 contractually committed retail franchise locations across our emerging brands—whether in development, under construction, or already operating. We are working to expand this pipeline throughout 2025 and 2026, continually selecting the right franchise partners and securing optimal real estate to achieve our brands’ development goals.”
Uniqlo at CF Chinook Centre (Image: Mario Toneguzzi)
Global apparel retailer UNIQLO will open its 15th store in Ontario, in Burlington, on April 25, at 10:00am, with opening events highlighting the brand’s commitment to the local community.
“Spanning over 15,000 square feet, UNIQLO Mapleview Centre will showcase UNIQLO’s unique customer experience and LifeWear lineup for men, women, and kids,” said the retailer in a news release.
“To celebrate the opening of Mapleview Centre, UNIQLO has planned a weekend of festivities for the community, along with limited in-store offers, a commemorative gift with purchase for in-store shoppers, and so much more. The grand opening-day celebration will include a ribbon-cutting ceremony, a taiko drumming performance by Raw Taiko, with free donuts and coffee from local bakers Sunshine Doughnuts for the first 300 customers. In addition, the first 100 customers on opening day will receive a $10 UNIQLO gift card.
“Also, throughout the opening weekend, customers can test their luck and spin the UNIQLO Garapon Wheel, a Japanese lottery game full of surprise and excitement, for a chance to win such exclusive prizes as UNIQLO branded products, Pocky snacks, Ito En Oi Ocha Green Tea, and $100 UNIQLO Gift Cards.”
Opening Day Schedule:
9:15 am – First 300 customers in line will receive free donuts from Sunshine Doughnuts
9:35 am – Raw Taiko Performance
9:45 am – Opening Speeches
9:55 am – Ribbon Cutting Ceremony
10:00 am – Doors Open to Customers
The retailer said Mapleview Centre will offer the brand’s iconic LifeWear apparel for men, women, and children, such as the Pocketable UV Protection Parka—light, packable jackets perfect for layering or travel—and AIRism—an innovative fabricthat actively wicks away moisture and heat from the skin and is highly breathable and quick-drying. Other staples include high-quality linens, premium denim, t-shirts, and more.
“Additionally, for any pair of pants $20 or above (excluding athletic wear and sweatpants), UNIQLO provides free hemming services to ensure pants length fits the customers’ unique measurements. UNIQLO also offers complementary in-store pick-up for online orders. The UNIQLO.ca online store offers a full variety of products, styles, and colours, as well as extended sizes that are not available in-store,” it said.
The retailer opened its first store in Hiroshima in 1984 and now has over 2,500 stores worldwide, including 30 in Canada, and online at UNIQLO.ca. “UNIQLO LifeWear is based on the Japanese values of simplicity, quality, and longevity. LifeWear features timeless design, supreme fit and comfort, and is shaped by customers’ evolving needs to improve their daily lives.”
Jeff Berkowitz of Aurora Realty Consultants has negotiated Uniqlo’s leases since the brand entered the country nearly eight years ago, and negotiated the Mapleview lease.
Hudson's Bay flagship store in downtown Montreal in 2021. Photo: Maxime Frechette
The Hudson’s Bay Company is reporting a stronger-than-expected financial position as it winds down operations under court protection. According to a newly filed Report of the Monitor dated April 22, 2025, the company’s cash flow and retail sales have significantly outperformed projections, offering a rare bright spot amid the department store’s looming closure of most of its locations.
The report, prepared by Alvarez & Marsal Canada Inc. — the court-appointed Monitor overseeing Hudson’s Bay’s proceedings under the Companies’ Creditors Arrangement Act (CCAA) — provides a detailed view of the retailer’s financial activity up to April 18, 2025, and includes a forward-looking 13-week cash flow forecast.
Positive Net Cash Flow Surprises Observers
Between March 15 and April 18, Hudson’s Bay generated $238.2 million in total receipts, just shy of its $241.1 million projection. However, due to lower-than-expected disbursements, the company recorded a net cash flow of $112.5 million, surpassing the projected figure by nearly $30 million.
The company’s closing cash balance was $122.5 million, significantly higher than the anticipated $71.5 million. These results underscore the success of the company’s store liquidation efforts, which have benefited from heightened consumer interest and increased in-store and online traffic since the company’s filing for creditor protection on March 7.
Liquidation Sales Drive Retail Receipts
Retail receipts during the reporting period surpassed expectations, offering a much-needed financial boost for Hudson’s Bay as it continues its wind-down process. Between March 15 and April 18, 2025, the company brought in approximately $235.7 million in retail sales, outperforming the projected figure by nearly $9.6 million.
According to the Monitor’s report, this positive variance was driven by heightened consumer demand amid the ongoing liquidation, which generated increased foot traffic in stores and elevated activity on the company’s e-commerce platform. Consignment goods from participating vendors also contributed to the strong performance, with several high-performing categories exceeding internal forecasts. Although the redemption of gift cards came in higher than anticipated—slightly diminishing net sales—the overall volume of purchases was enough to more than offset this impact.
Still, the Monitor noted a recent softening in sales momentum as liquidation events mature and consumer urgency fades, suggesting a potential plateau in receipts over the coming weeks.
Hudson’s Bay store at Metropolis at Metrotown in Burnaby, BC, on Saturday, April 5, 2025. Photo: Lee Rivett
Operating Costs and Vendor Fees Lower Than Expected
While Hudson’s Bay experienced stronger-than-forecast sales, its ability to manage expenses also played a key role in achieving a better-than-expected cash position. The company reported total disbursements of $125.7 million during the reporting period—well below the projected $158.6 million. A significant portion of this $33 million variance came from reduced operating expenses, which came in $31.4 million under budget.
This savings was attributed to lower-than-expected costs associated with store-level operations, reduced payments to critical vendors, and minimized credit card processing fees. In addition, liquidation consultant fees and expenses were substantially below forecast, with actual disbursements totalling just under $1 million versus a projected $9.8 million. These favourable variances, coupled with lower-than-planned sales tax remittances and deferred shared service payments, further supported the company’s unexpectedly strong cash position.
However, the company did report higher payments to concession and consignment vendors due to the outsized success of consignment merchandise sales—an indication of the liquidation’s relative success in moving high-margin inventory.
Delay in Additional Inventory Creates Future Opportunity
Hudson’s Bay did fall short in one revenue category: “other receipts.” The company had forecast nearly $15.1 million in this category but recorded only $2.5 million, resulting in a $12.6 million shortfall. The variance was caused by a delay in receiving Additional Consultant Goods — merchandise expected to supplement liquidation sales.
This shortfall is not expected to be permanent. The Monitor notes that once these goods arrive and are sold, the company should recover the difference, potentially supporting future weeks of the liquidation process.
Interest Payments Withheld Following Court Ruling
The report also sheds light on interest obligations. Hudson’s Bay did not make interest payments on its FILO Credit Facility or the Pathlight Credit Facility during the reporting period. This was due to the court’s decision not to approve the company’s Restructuring Support Agreement, which would have permitted those interest payments.
As a result, the company saved approximately $3.5 million in interest expenses. Similarly, $21 million in cash collateralization for letter of credit obligations was also withheld, further bolstering the company’s short-term liquidity.
Revised Forecast Projects Modest Growth Through July
Looking ahead, Hudson’s Bay has filed a revised 13-week cash flow forecast covering the period from April 19 to July 18, 2025. The forecast anticipates $331.5 million in total receipts during this period, balanced against $328.4 million in disbursements. If realized, this would result in a modest net cash inflow of approximately $2.1 million over the quarter.
The projection suggests a stabilizing financial picture as liquidation efforts mature and stores move toward closure. While the level of receipts remains relatively strong, it is expected to taper compared to the initial wave of liquidation activity. The revised forecast does not include interest payments on the company’s FILO or Pathlight credit facilities, nor does it account for cash collateralization for letter of credit obligations—both of which were paused following the court’s decision not to approve the proposed Restructuring Support Agreement.
Assuming no major unforeseen disruptions, the company anticipates closing the forecast period with a cash balance of $124.6 million, maintaining the liquidity needed to fulfill operational and wind-down obligations.
Liquidation Strategy Adjusted to Reflect Store Wind-Down
As Hudson’s Bay progresses through its CCAA proceedings, its liquidation strategy has been adjusted to reflect the accelerating wind-down of its retail footprint. The company continues to operate the vast majority of its stores as liquidation outlets, with most locations—including 80 Hudson’s Bay stores, 13 Saks Off Fifth units, and three Saks Fifth Avenue stores—scheduled to close by mid-June.
In preparation for these closures, the company has begun systematically scaling back internal obligations. Salary continuation arrangements for employees terminated prior to the CCAA filing have been discontinued, while post-retirement benefits, including healthcare and dental plans, are scheduled to end by April 30. Payments under the company’s supplemental executive retirement plans (SERPs) have also been suspended.
These measures, implemented in consultation with the Monitor, reflect a broader effort to reduce costs and conserve cash as the retailer nears the final phase of its operations. The store closure timeline, combined with the rationalization of benefits and staffing costs, indicates that the company is following a tightly managed path toward a complete exit from traditional retail operations in Canada.
Monitor Confirms Sufficient Liquidity
Based on current forecasts and performance, the Monitor concludes that Hudson’s Bay will maintain adequate liquidity through the forecast period. As such, the company is positioned to meet its short-term obligations, complete its store liquidation efforts, and continue exploring bids for its remaining assets, including leases, brand intellectual property, and a historic art and artifact collection.
The Monitor’s report highlights the company’s ability to execute a wind-down in a controlled and financially sustainable manner — a rare accomplishment in the realm of retail insolvency.
Conclusion
While Hudson’s Bay’s long-term future remains uncertain, its financial performance during liquidation has defied expectations. With over $120 million in cash on hand and a tight rein on costs, the retailer has bought itself crucial time and breathing room as it finalizes store closures and continues its asset monetization process.
Further updates are expected following the May 1 deadline for binding lease bids and as the Sale and Investment Solicitation Process (SISP) continues to attract interest in Hudson’s Bay’s intellectual property and remaining commercial assets.
Celebrating the launch of A&W Rewards™, a new A&W loyalty program! (CNW Group/A&W Food Services of Canada Inc.)
A&W, Canada’s original burger chain, has launched its new loyalty program, A&W Rewards.
The new loyalty program gives Canadians a chance to collect points and redeem free rewards on favourites, announced the company on Wednesday.
Angie Tsang
“Get ready to be rewarded, A&W fans! We’re thrilled to announce the launch of our brand-new loyalty program – something our guests have been asking for! Your incredible loyalty to your local A&W means the world to us, and we’re excited to finally offer a program that rewards you for every delicious visit,” said Angie Tsang, Director of Consumer Marketing.
If you already have an account on the A&W App, you are all set up! New mobile guests can download the app and sign up for an account, said the company.
“Whether you order through the A&W Mobile App or scan your unique QR code while ordering at a restaurant, every visit is a step closer to redeeming points for A&W favourites like a frosty A&W Root Beer™, crispy Onion Rings, or the tasty Teen Burger™,” it said.
People can earn 10 points* for every $1** spent, which can be redeemed for up to three items per transaction from the different reward levels.
By redeeming the following points, you can get one of the following favourites:
300 Points: Regular Root Beer, Small Coffee, Apple Turnover, Hashbrown
600 Points: Buddy Burger™, Small Latte, Regular Fries
900 Points: Onion Rings, Mama Burger™
1500 Points: Teen Burger, Chubby Chicken™ Burger, Mama Burger™ Combo, Classic Bacon & Eggs Combo.
Download the Mobile App to sign up for Rewards to start getting rewarded when you place an order for your favourites, added the company.
For full details about Rewards, refer to the Terms of Use.
*Points will also expire 12 months after the calendar month that they are earned. **Points are calculated on order subtotals after discounts and other offer redemptions. Excludes taxes, fees and purchases made on third party platforms.
Canadians can now earn and redeem points for FREE A&W Favourites by using their A&W App. (CNW Group/A&W Food Services of Canada Inc.)
The company is Canada’s original burger chain with over 1,050+ restaurants that are Canadian-owned and operated.
Second Cup is undergoing a major transformation and expansion under the leadership of Foodtastic, with CEO Peter Mammas revealing a bold vision for the iconic Canadian coffee brand. Since acquiring Second Cup in 2021, Mammas says the brand has turned a corner—both in operations and performance.
“When we took it over, the brand was suffering,” said Mammas. “So, we came up with a whole new brand image. We changed the operations teams—we increased the number of store visits and improved the quality of operations. Since then, it’s actually been our best-performing brand in all of Foodtastic.”
Peter Mammas, CEO of Foodtastic
Second Cup currently operates around 200 locations across the country, with plans for rapid expansion. “We’re opening over 20 new stores in the next 12 months,” Mammas confirmed. “We just opened our newest store in Kipling GO Bus Terminal in Toronto, part of the Metrolinx Network. The brand’s really doing well.”
With the competitive coffee market more crowded than ever, Mammas believes Second Cup stands out in several key ways. “Every time we do surveys—or when others do surveys—we’re always ranking in the top three, regardless of the region,” he said. “So I think people really appreciate the coffee. We spend a lot of time on branding, marketing, and restaurant operations. It’s not just one thing—it’s a combination of all of that.”
He also pointed to Second Cup’s Canadian ownership as a significant differentiator. “We’re the only Canadian-owned coffee shop,” Mammas noted. “Tim Hortons is owned by Brazilians, and Starbucks is obviously American-owned.”
Looking ahead, the brand has set a clear growth trajectory. “Basically, our five-year plan is to reach 300 stores,” Mammas explained. “That equates to 20 net new openings each year. We don’t want to be closing stores—we want to be opening 20 net new locations annually to hit 300.”
Real estate strategy will play a crucial role in that growth. “We’re looking for roughly about 1,500 square feet. That’s the prime size, I’d say. We can go as low as 1,200 or up to 1,800, but 1,500 is the sweet spot,” said Mammas.
In terms of positioning, visibility is key. “We really like endcaps. They’re more prominent,” he added. “Right now, we’re looking to get into markets we’re not really in yet.”
As Second Cup continues to chart its comeback, Mammas is confident in the brand’s renewed momentum and the company’s focused approach to scaling it across Canada. With a refreshed brand, strategic growth plan, and deepened customer loyalty, Second Cup is once again percolating at the forefront of the country’s café scene.
Recently, Second Cup Café launched a vibrant new lineup of eight limited-time beverages designed to refresh, energize, and delight. Inspired by homegrown flavours, summer campfire memories, cross-country road trips and blooming botanicals, the Spring-Summer 2025 menu features bold and creative new drinks, said the company.
Celebrating one of Canada’s iconic sweets, the Nanaimo Bar FroCho and Nanaimo Bar Flash Cold Brew nod to the beloved West Coast dessert.
The Campfire Mocca Flash Cold Brew and Campfire Mocca Frappé blend toasted marshmallow and chocolate flavours, offering a small taste of summer traditions, reimagined in every sip.
The Strawberry Rose Spritzer offers a sparkling mix of strawberry, citrus, and a floral hint of rose, perfect for patio season.
The Iced Matcha with Strawberry Rose Cold Foam features iced matcha topped with silky strawberry rose cold foam.
The Watermelon Dragon Fruit Infuzer with Coconut and the Tropical Dragon Fruit Infuzer with Coconut are two bold Infuzer beverages powered by Red Bull. Both Infuzers deliver a revitalizing punch of fruit-forward flavour, blended with a splash of coconut non-dairy milk and served over ice—ideal for those on the go.
Cendrine Lavigne
“Our Spring-Summer menu is all about capturing the essence of the season—whether it’s a nostalgic treat by the campfire or a cool, floral spritz on a sunny day,” said Cendrine Lavigne, Marketing Director of Second Cup. “We wanted to offer something for every moment, mood, and craving.”
Foodtastic is one of Canada’s largest restaurant franchisors, operating more than 1,200 locations across the country. Its diverse portfolio includes Freshii, Quesada, Pita Pit, Second Cup, Milestones, and over 22 other banners.
Peoples Jewellers at Yorkdale in Toronto. Image supplied
Peoples Jewellers has officially reopened its newly redesigned flagship location at Toronto’s Yorkdale Shopping Centre. The store introduces a refreshed aesthetic and exclusive product assortments designed to elevate the in-store experience while maintaining the brand’s hallmark accessibility.
“This is more than a store reopening,” said Stacee Johnson Williams, President of Peoples Jewellers. “The Yorkdale flagship is a reflection of our brand’s future. It blends warmth, elegance, and a distinctly Canadian design sensibility, creating an inviting space that meets the expectations of today’s jewellery customer.”
A New Look Rooted in Canadian Elegance
The redesigned store draws inspiration from Canada’s natural beauty, offering a warm and sophisticated environment that reflects both the nation’s landscapes and the personal approach of Peoples’ long-standing jewellery consultants. The interior features modern design elements blended with organic materials, creating an environment that feels both luxurious and welcoming to a diverse clientele.
The layout encourages leisurely browsing with clear sightlines, soft lighting, and carefully curated display zones. Signature collections—including exclusive, limited-edition Le Vian pieces and a selection of 10-18K gold fashion jewellery—are on prominent display, giving the flagship a product mix unique to the Yorkdale location.
Strategic Retail Investment
Toronto remains a strategic focal point for Peoples Jewellers, with Yorkdale offering a high-profile platform for engaging both loyal customers and new shoppers. The investment in the Yorkdale flagship reflects broader plans to remodel and open new locations in key Canadian markets over the coming year.
“Our customers are at the centre of every decision we make,” added Johnson Williams. “This flagship sets a new standard for how we deliver our promise of affordable luxury, exceptional service, and meaningful moments.”
Yorkdale Shopping Centre continues to be a vital destination for luxury and aspirational brands in Canada. The revamped Peoples location reinforces the brand’s place within Yorkdale’s high-traffic, high-expectation retail environment.
Over a Century of Jewellery Retail Leadership
Peoples Jewellers has deep roots in Canada, beginning with its founding in Toronto in 1919 by Sidney Rosenberg under the name People’s Credit Jewellers. At the time, the company pioneered the idea of purchasing jewellery through installment plans, making fine jewellery more attainable for working Canadians. This innovative approach helped the brand expand nationally throughout the 20th century.
By the 1980s, Peoples had grown into Canada’s largest jewellery retailer with over 180 locations. Though a bold acquisition of U.S.-based Zales in the late 1980s proved financially challenging, the company rebounded following a 1999 acquisition by Zale Corporation and later, in 2014, by Signet Jewelers Limited—now the world’s largest retailer of diamond jewellery.
Despite changes in ownership over the decades, the brand has remained deeply Canadian in its operations and appeal. Today, with over 90 stores from the Maritimes to British Columbia, Peoples Jewellers continues to be recognized as “Canada’s #1 Diamond Store,” a position reinforced by its expansive bridal, fashion, and watch categories.
A Modern Brand for Today’s Consumer
While retaining its legacy of accessibility and trust, Peoples Jewellers has also embraced digital innovation. The brand’s website—www.peoplesjewellers.com—complements its brick-and-mortar presence by offering a seamless e-commerce platform with virtual consultations, online exclusives, and customer service features designed to enhance convenience for today’s tech-savvy consumer.
This omnichannel approach is central to the brand’s ongoing evolution. In-store service remains a defining strength, but digital investments continue to grow in importance as shoppers seek flexibility and personalization across their buying journeys.
About Signet Jewelers
Peoples Jewellers is a key brand under the umbrella of Signet Jewelers Limited, a global leader in diamond jewellery retail with a portfolio that includes Kay Jewelers, Zales, Jared, Blue Nile, and James Allen. As a Purpose-driven company, Signet prioritizes sustainability and responsible sourcing, and is an active participant in the United Nations Global Compact.
Operating approximately 2,700 stores across North America and the UK, Signet’s acquisition of Peoples in 2014 helped strengthen its presence in the Canadian market, while allowing Peoples to retain its distinctive identity and focus on Canadian consumers.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Former Hudson's Bay store at Woodgrove Mall in Nanaimo. Photo: Trip Advisor
As Hudson’s Bay continues its restructuring efforts under court protection, a new court document reveals considerable interest in the department store chain’s vast network of retail leases across Canada. The update, released Tuesday as part of the company’s ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings, shows that 18 unnamed parties have submitted letters of intent (LOIs) for 65 of the retailer’s leases, marking a critical step in a broader process to offload the company’s remaining assets before the majority of stores shutter in mid-June.
The Second Report of the Monitor, filed by Alvarez & Marsal Canada Inc. on Tuesday, details the status of a court-approved Lease Monetization Process managed by real estate consultancy Oberfeld Snowcap, providing the clearest picture yet of how the Hudson’s Bay lease portfolio is faring in the marketplace.
A Complex Wind-Down for an Iconic Retailer
Hudson’s Bay, a storied name in Canadian retail with roots dating back to 1670, filed for creditor protection in early March after failing to secure the capital necessary to continue as a going concern. Since then, the company has moved aggressively to liquidate merchandise and reduce operations, planning to close almost all of its 80 Hudson’s Bay stores, 13 Saks Off Fifth locations, and 3 Saks Fifth Avenue stores.
As of mid-April, only six Hudson’s Bay stores in the Toronto and Montreal areas were expected to remain open past June (no word yet on the downtown Toronto Saks), with lease marketing activities focused on the remaining roughly 100 leaseholds, which include high-traffic urban and suburban retail spaces as well as four distribution centres.
65 Leases Attract Bids — But Not All Find Suitors
The Monitor’s report confirms that 31 parties signed non-disclosure agreements (NDAs) to access lease information. Of these, 18 proceeded to submit LOIs covering 65 separate lease locations. According to the report, some of the bids overlap, meaning multiple parties have expressed interest in the same locations, while some offers were made by landlords themselves.
While the Monitor declined to identify the interested parties or specify which properties garnered the most attention, the activity signals robust market interest in at least a portion of Hudson’s Bay’s real estate footprint — particularly in prime locations that are difficult to access under typical market conditions.
Hudson’s Bay store at Mic Mac Mall in Dartmouth, Nova Scotia. Image: Apple Maps
Challenges Tied to Lease Terms
Despite this early momentum, the report also highlights considerable challenges. 36 leases did not receive any interest, raising the possibility that those locations may be returned to landlords.
The hurdles stem in part from restrictive lease covenants. Many of Hudson’s Bay’s leases require that any tenant use the full premises and in some cases, specify that the occupant must operate as a department store. These legacy provisions significantly narrow the pool of viable replacements, as only a handful of retailers operate on that scale in Canada today.
Additionally, since Hudson’s Bay sold much of its owned real estate years ago, the leases being offered don’t include title to the buildings. Several stores are operated through joint ventures with RioCan Real Estate Investment Trust, but most locations are subject to long-standing agreements that often include favourable lease rates — another factor making the assets attractive, but also potentially complex to assume.
Lease Process Timeline and Sale Mechanics
According to the court filing, binding offers for leases are due by May 1, 2025, and must include a 10 per cent refundable deposit based on the proposed purchase price. These bids follow a structured two-phase lease monetization process supervised by Oberfeld and the Monitor.
Initial LOIs, due earlier in April, provided non-binding indications of interest. The Phase 1 deadline served as a barometer for interest levels and helped narrow the field of serious contenders.
The next step will involve the assessment of qualified LOIs, with a subset of these potentially advancing to binding agreement negotiations. Lease assignments will ultimately require Court approval, and in many cases, landlord consent.
Interest May Extend Beyond Leases Alone
Interestingly, the Monitor’s report also noted that some prospective bidders for leases are also evaluating other Hudson’s Bay assets as part of the parallel Sale and Investment Solicitation Process (SISP). That includes intellectual property, such as the company’s trademarks and well-known multi-coloured “Stripes” branding, which still holds considerable equity in the Canadian market.
It remains unclear whether any of the lease bidders are also vying for brand assets — or whether a single buyer might seek to relaunch a scaled-down version of Hudson’s Bay using select stores and associated IP.
A Historic Art Collection to Be Sold Separately
Hudson’s Bay Royal Charter from 1670
In a related development, the Monitor has announced a separate art auction to be held for Hudson’s Bay’s historic collection of 1,700 artworks and 2,700 artifacts, including the company’s original Royal Charter from 1670. These culturally significant assets have attracted interest from museums, government institutions, and private collectors.
A formal auction is being organized under a different sales process, with guidance from a professional auctioneer and oversight from the Monitor and financial advisor Reflect Advisors LLC. Bids for the collection are due April 30, and sales will be completed via individual bills of sale rather than court orders for each transaction.
Cash Flow Position Improving Amid Liquidation
The Second Report also reveals that Hudson’s Bay’s cash position is more stable than anticipated, thanks in part to strong retail performance amid liquidation. For the reporting period ending April 18, the company posted net cash flow of $112.5 million, which was nearly $30 million ahead of forecast. The Monitor attributes the variance to stronger-than-expected store traffic and sales, as well as delays in payments related to liquidation goods.
The cash balance at the time of reporting stood at $122.5 million, significantly ahead of the projected $71.5 million. A new 13-week forecast projects the company will retain positive cash flow through mid-July, albeit modestly, with a closing balance forecasted at $124.6 million.
What’s Next for Hudson’s Bay
While the lease monetization and liquidation processes continue, the company also faces scrutiny over employee entitlements. The Monitor has backed a motion to appoint Ursel Phillips Fellows Hopkinson LLP as Employee Representative Counsel to assist non-unionized employees with claims, severance issues, and communications. The firm will also liaise with the court and the Monitor on behalf of these stakeholders.
Hudson’s Bay could be entering its final chapter as a national department store chain. Yet, the strength of interest in its leases, brand assets, and even its art collection demonstrates the lasting value of its legacy — and suggests that elements of the brand may yet survive in new forms, or under new ownership.
Canadian clothing brand Frank And Oak, long celebrated for its sustainability-driven approach to fashion, is closing the doors to all 14 of its physical stores across Quebec, Ontario, and British Columbia. The announcement comes as part of a broader restructuring effort under court supervision, with ownership of the brand transferring to Montreal-based Lamour Group and Thread Collective Inc.
The decision follows the approval of the sale by the Superior Court of Quebec, effectively ending the retail operations of Frank And Oak’s parent company, UGC Canada Holdings Inc., which is expected to file for bankruptcy in the coming days. While stores will be liquidated, Frank And Oak’s brand will live on through e-commerce, offering a continued online presence for Canadian customers.
A Brand in Flux: From Darling to Distress
Founded in 2012 by Ethan Song and Hicham Ratnani, Frank And Oak quickly rose to prominence by blending stylish design with sustainability. Originally a digital-native brand, its early success was driven by eco-conscious millennials drawn to ethically sourced materials, closed-loop production, and a minimalist aesthetic.
Physical stores followed, opening across major Canadian cities. Flagship locations in Montreal and Toronto featured community-driven experiential retail spaces, further enhancing the brand’s image as an innovator.
Despite its popularity, however, Frank And Oak has struggled to achieve long-term financial viability. Its first bankruptcy filing came in 2020, with over $19 million in debt. It was then acquired by Unified Commerce Group (UCG), a New York-based firm specializing in retail turnarounds. UCG’s goal was to help Frank And Oak scale while retaining its values. But the revival has not gone as planned.
Mounting Debt and Financial Pressures
In January 2025, Frank And Oak filed once again for creditor protection under Canada’s Bankruptcy and Insolvency Act. The filing revealed staggering debts totalling $71 million. Secured creditors were owed $55.5 million—including UCG itself and financial institution Desjardins. Unsecured creditors were owed another $14.6 million.
Among the largest unsecured creditors were:
Canada Border Services Agency (CBSA): $3.5 million
Canada Revenue Agency (CRA): $1.7 million
Shopify: $529,000
Prepaid card customers: Approx. $504,000
Global manufacturers and logistics providers
A December 16 letter from UCG CEO Dustin Jones acknowledged the gravity of the situation.
“Despite significant growth over the past few years, the company has struggled to recover from losses incurred as a result of the COVID-19 pandemic,” Jones wrote, citing the lasting impacts of operational disruptions and a shift in consumer habits.
Earlier this month, the company announced it would close 10 stores. The number has since expanded to all 14, marking the end of Frank And Oak’s brick-and-mortar era—for now.
Frank And Oak store on Queen St. W. in Toronto. Photo: Frank And Oak
Pandemic Fallout and Global Pressures
The pandemic’s effects were far-reaching. Supply chain disruptions and border delays impacted inventory flow. U.S. operations shuttered amid tariff uncertainty, and increased shipping costs only added to the strain.
But external pressures also played a key role. Damien Siles of the Quebec Retail Council pointed to macroeconomic challenges:
“Inflation, rising operational costs, and weakening consumer confidence have left many Canadian retailers struggling. Frank And Oak is not alone.”
Siles also criticized the federal government for failing to provide protections against international e-commerce giants.
“Companies like Shein and Temu introduce thousands of SKUs daily and ship directly to consumers with little oversight. That makes it incredibly hard for Canadian brands to compete.”
Transition to New Ownership
Despite the collapse of UGC Canada Holdings Inc., the Frank And Oak brand will continue under new ownership. Lamour Group, headquartered in Montreal, specializes in manufacturing and distributing apparel globally. The group is acquiring Frank And Oak’s intellectual property, while existing inventory is expected to be sold off through liquidation.
Thread Collective Inc., also involved in the purchase, is expected to help guide the brand’s next chapter.
In a statement, the companies emphasized that Frank And Oak’s digital storefront will remain active, and they are currently evaluating future strategies that may include relaunching the brand in select markets or through new retail channels.
While few operational details were provided, some industry watchers suggest a “digitally native vertical brand” (DNVB) strategy could be used to relaunch Frank And Oak with tighter inventory, direct-to-consumer margins, and leaner operations.
A Warning for Canadian Fashion Retailers
The story of Frank And Oak is one of inspiration and caution. What began as one of Canada’s most promising sustainable fashion ventures has now entered its second major restructuring within five years.
The rise and fall of the brand highlights not only the challenges of growing in a competitive, cost-sensitive retail environment but also the structural disadvantages many Canadian retailers face. Domestic fashion brands continue to grapple with higher costs, slower logistics, and limited support against aggressive international entrants.
Still, Frank And Oak’s strong brand equity and devoted following give it a fighting chance under Lamour’s stewardship—especially if it leans into its online capabilities.
Whether Frank And Oak’s next iteration can recapture its early success remains to be seen. But for now, the chapter closes on its physical retail footprint as another Canadian fashion brand finds itself navigating turbulent waters.
Hudson's Bay department store at Bower Place in Red Deer, Alberta. Photo: Google Maps
Tensions are escalating between Hudson’s Bay Company (HBC) and its largest union as the historic retailer continues to wind down operations under creditor protection. In a move that has sparked outrage, HBC has eliminated commission pay for cosmetics and big-ticket sales employees at certain stores, a decision that Unifor claims violates binding collective agreements.
The change took effect on April 20 and impacts unionized staff across locations in Windsor, Kitchener, and Toronto’s CF Sherway Gardens, as well as at the retailer’s e-commerce warehouse. Employees who previously relied on commissions to supplement their base income will now receive only base pay, despite ongoing liquidation sales.
Unifor, which represents approximately 595 HBC workers through Locals 40 and 240, has filed a formal grievance over the issue and is calling for the immediate reinstatement of commission pay.
“This is a blatant violation of our members’ collective agreements and a cruel blow,” said Lana Payne, Unifor National President. “These are workers who have given years to this company—only to be shortchanged while managers are being rewarded with bonuses.”
Liquidation Pay Cuts Amplify Worker Concerns
Hudson’s Bay’s justification for eliminating commissions centres on a dwindling product inventory and a decline in big-ticket sales as stores continue to liquidate. But for workers, many of whom are facing imminent termination without severance, the decision feels like a ‘final insult’ according to the Union.
“We’re all heartbroken. We feel betrayed,” said Hazel Harris, an HBC e-commerce warehouse worker who spoke at a recent Unifor conference attended by more than 100 retail employees nationwide. “We just want what was promised to us and for HBC to treat us with dignity and respect. Thankfully, our union has our back.”
Unifor Ontario Regional Director Samia Hashi said the company’s actions reflect a troubling pattern. “This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply. Workers are being kept in the dark, and their pay is being cut without negotiation. This is exactly why we need stronger legislative protections.”
$3 Million in Bonuses for Management Adds to Worker Frustration
Fueling further resentment is the revelation that HBC has allocated $3 million in bonuses for managers and non-store staff during the liquidation process. The union argues that while front-line employees see their compensation cut and face termination, executives are being rewarded.
The bonus plan came to light in court filings tied to HBC’s proceedings under the Companies’ Creditors Arrangement Act (CCAA). Unifor has repeatedly called for full transparency, urging the company to prioritize workers, honour severance obligations, and respect all collective agreements.
The grievance over commission cuts is the latest chapter in what has become a broader labour dispute, unfolding amid one of the most significant retail collapses in Canadian history.
Thousands of Jobs on the Line as HBC Stores Continue Liquidation
Hudson’s Bay, once a cornerstone of Canadian retail, is in the process of liquidating almost all of its department stores. Unless a last-minute investor or buyer steps in to salvage part of the business, thousands of employees will lose their jobs in the coming weeks.
When the company entered CCAA protection on March 7, it had more than 9,300 employees. Since then, layoffs have already begun. In early April, 179 corporate positions were eliminated, followed by another 93 roles. According to court documents, the company does not expect to pay severance as job cuts continue.
This has triggered legal battles over employee representation. HBC has asked the court to appoint the law firm Ursel Phillips Fellows Hopkinson LLP to represent current and former employees during the CCAA process. However, Koskie Minsky LLP, already retained by more than 250 employees, has pushed to be formally recognized instead.
The representative law firm would have the authority to file claims on behalf of employees, assist them with the federal Wage Earner Protection Program (WEPP), and ensure their voices are heard during the restructuring.
Disability and Retirement Benefits Also Under Threat
Beyond wage disputes and layoffs, HBC’s restructuring poses deeper implications for vulnerable groups within its workforce. About 183 individuals currently receive long-term disability benefits through an “administrative services only” (ASO) plan, which is not insured. Without a viable financial plan or a new owner, those benefits could be lost.
The company has also notified around 2,000 retirees that their post-retirement benefits—including health, dental, and life insurance—will be terminated by the end of April. Meanwhile, supplementary executive retirement plans (SERPs) have been suspended, impacting 304 current and former senior employees. Royal Trust Corporation of Canada has begun winding up these plans.
Court documents confirm that HBC’s main pension plan, which has over 20,000 members, remains in a surplus position and is still operating. On April 3, the Financial Services Regulatory Authority of Ontario appointed Telus Health as the independent administrator, removing the company’s direct control over the fund.
Nonetheless, the termination of additional retirement benefits has heightened fears among retirees and staff nearing retirement age.
Hardship Fund Discussions Signal Mounting Pressure
In response to growing criticism, Hudson’s Bay has initiated talks with lenders Pathlight Capital LP and Restore Capital LLC about setting up a hardship fund for employees suffering financial distress due to benefit and income loss.
In a recent affidavit, HBC Chief Financial Officer Jennifer Bewley confirmed the hardship fund was being explored, though no firm details or timelines have been released. While some see this as a positive step, others view it as too little, too late.
