If you are holding onto a Hudson’s Bay gift card, spend it now. That’s the message from retail experts after the department store filed for creditor protection to avoid bankruptcy.
“If you have gift cards, you’re at risk,” retail analyst David Ian Gray told CTV News. “We saw when Nordstrom left that they gave a heads up, I think a very quick window… I feel like it was days, it wasn’t weeks, to make use of these things.
“You’re not assured of anything right now, nobody is,” Gray added.
In a court filing, Hudson’s Bay confirms it is currently honouring outstanding gift cards. Court documents indicate that as of Feb. 1, Canadian customers had outstanding gift cards worth a total of approximately $24 million.
While gift cards are still active, Hudon’s Bay Rewards points are not, for now. According to court documents, the company’s rewards program will be “paused” as the company applies for creditor protection. As of Feb. 1, the court filing shows more than eight million Canadian customers had outstanding reward points worth more than $58 million.
One business professor sees the suspension of the loyalty program as the latest hit to a declining customer experience at the long-running department store with 80 Canadian locations.
“Why would you go back to a store where they suspended your loyalty account?” asked Mark Colgate from the University of Victoria’s Gustavson School of Business.
Retail watchers believe up to 40 Hudson’s Bay locations across the country could be closed as part of a restructuring deal, which could affect thousands of jobs. The company currently employs more than 9,000 people.
