Kamloops, Okanagan shoppers saw troubling signs before The Bay’s liquidation plans

As a brand older than the country approaches bankruptcy and closure, a look back shows financial issues were apparent to Kamloops and Okanagan shoppers at The Bay over the last few years.

The Hudson’s Bay Company has four stores in malls across the region, including Kamloops, Penticton, Vernon and Kelowna. They’re among 80 locations across the country, and all of them will see massive clearance sales as the company goes through creditor protection.

From worker walkouts, to unpaid rent and failing equipment, the signs weren’t positive for the Thompson-Okanagan stores.

READ MORE: Fewer jobs available, unemployment on the rise in Thompson-Okanagan

Of the four, Kamloops is the only unionized store. It was host to a five-month strike, starting when workers took to picket lines just as the Christmas 2023 shopping season was ramping up.

The union refused an offer for a one per cent raise and some claw backs to benefits for The Bay’s retail workers, only signing a deal more than five months later after a provincially-appointed mediator was assigned to help at the negotiating table.

At Penticton’s Cherry Lane mall location, it took a judge’s order to enforce rent payment.

READ MORE: Disbarred Kamloops lawyer’s lawsuit dismissed over delays

The Bay stopped paying its lease for nearly a year beginning at the outset of the COVID-19 pandemic. A judge ordered the company pay around $38,500 a month, which was half of its rent at the time, and the order came after the Penticton mall tried to evict The Bay for an outstanding $733,286 in rent.

Across Canada there were other signs of dwindling investment into the stores, like failing equipment. Some Lower Mainland stores last summer closed due to air conditioning equipment repairs. The Kamloops store saw one of its escalators shutdown for repairs for months following the end of the strike.

The resurrection of discount brand Zellers within The Bay stores was announced two years ago and Kamloops was one of four initial BC locations within the fold. The effort meant to “tap into the nostalgia” for Zellers wasn’t enough to have consumers pour into the stores.

The fate for Canada’s oldest company isn’t yet decided, but the retailer with more than 9,000 employees owes lenders nearly $1 billion.

An Ontario judge is considering whether the entire business will be liquidated or massively shrunk with a few stores left open.