A 355 Year Old Company is Heading Towards Bankruptcy

Earlier today the WSJ reported that the Hudson's Bay Company was heading towards bankruptcy.

A few hours later the company officially entered into creditor protection but the situation looks bleak.

What caused this 355 year old company to get in this position in the first place?

They blame the Canada-U.S. trade war and declining foot traffic, but personally I think it's partly e-commerce eroding market share and declining consumer interest in department stores. Mostly, however, I point to the curse of private equity.

While it can sometimes be life raft, I suspect in this case it burdened them with excessive debt, prioritized short-term profits over long-term growth, and harmed company culture and morale.

Just my opinion though, I could be way off.

#shorts #hudsonsbay