Hudson’s Bay, a historic Canadian department store chain, has sought protection in its home country and intends to restructure after failing to secure financing to shore up its cash reserves.

The company sought creditor protection with the Ontario Superior Court of Justice on Friday, according to a statement. Bloomberg reported earlier the retailer was planning to file for bankruptcy.

The court has appointed Alvarez & Marsal Canada Inc. to oversee the proceedings, according to the statement.

Hudson’s Bay operates as a standalone Canadian business under Hudson’s Bay Co., which is North America’s longest continuously operating company, with headquarters in New York and Toronto. Hudson’s Bay operates TheBay.com and has at least 80 stores across Canada.

HBC had also been the parent company of Saks Fifth Avenue, but acquired Neiman Marcus Group to establish Saks Global, a separate business, last year. In February, Saks Global planned to lay off around 5% of its U.S. corporate workforce as the department store integrated its recent acquisition, Bloomberg reported.

The Canadian restructuring proceedings “do not affect U.S.-Saks Global, which is a standalone entity distinct from Hudson’s Bay Company ULC,” according to the statement.

Hudson’s Bay, founded in 1670, has been penalized by years of rising inflation, as have other retailers that sell non-essential products. The retailer, which sold a string of real estate assets to help pay down debt in November 2023, has been cutting costs.

“Earlier this year, we worked with potential investors to refinance a portion of our credit facilities to improve our liquidity and support our business plan,” Liz Rodbell, the president and chief executive officer of Hudson’s Bay, said in the statement. “However, the threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions.”

In January, it cut 41 employees, according to a report from the Canadian Press. Last year, the retailer laid off about 1% of its workforce in April, before announcing new rounds of layoffs.