Hudson’s Bay Begins Liquidation as Historic Retailer Faces Closure
Hudson’s Bay Company, Canada’s oldest retailer, has started liquidating its inventory as financial struggles force store closures nationwide.
Full Liquidation of Hudson’s Bay Stores
Hudson’s Bay filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) on March 7, 2025. Initially, the company planned to close only half of its locations. However, on March 14, it announced that full liquidation would begin unless it secured emergency financing.
The closure affects 80 Hudson’s Bay stores, three Saks Fifth Avenue locations, and 13 Saks Off 5th Avenue outlets across Canada. The company’s e-commerce operations will also shut down. These closures impact 9,300 employees and mark the end of a retail institution that began in 1670.
Court Proceedings and Financial Troubles
In a March 17 court session, Hudson’s Bay’s lawyer, Ashley Taylor, confirmed that liquidation would begin immediately. The retailer’s leadership believes that a fast-moving process will maximize asset value and preserve any restructuring opportunities.
Despite reaching out to 19 potential lenders and major landlords for concessions, Hudson’s Bay failed to secure financing. The company owes nearly $1 billion in debt and holds $315 million in inventory that must be liquidated.
Attorney Andrew Hatnay, representing employees, warned that this would be Canada’s largest mass job loss since the collapse of Sears Canada. He urged the court to delay liquidation by one week, arguing that once sales begin, the retailer’s future is sealed.
Historical Decline of Hudson’s Bay
Hudson’s Bay has faced years of financial instability. U.S. real estate investor Richard Baker, owner of NRDC Equity Partners, acquired the company in 2008. His strategy focused on real estate rather than retail. Under Baker, the company went private in 2020 and struggled to maintain profitability.
Hudson’s Bay’s retail failures include:
- Selling Lord & Taylor to Le Tote in 2019 before its closure.
- Struggling to integrate Galeria Kaufhof, a German department store chain.
- Selling its Fifth Avenue flagship store to WeWork for $850 million.
Saks Global, which includes Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, remains separate from Hudson’s Bay’s financial troubles. However, the liquidation of Hudson’s Bay stores will affect the Saks brands it leases to.
The End of Traditional Department Stores in Canada?
Retail analysts compare Hudson’s Bay’s downfall to the closures of Eaton’s and Sears Canada. The department store model struggled as e-commerce and specialty retailers grew. Experts believe Hudson’s Bay failed to adapt and remained stuck in outdated retail practices.
David Ian Gray, a retail strategist, stated, “They were working with an outdated model that became archaic.” Meanwhile, specialty stores like Simons and discount giants like Walmart continue to thrive. Consumers now prefer online shopping or specialized retailers for their purchases.
Liquidation Sales Begin
Liquidation sales have started at Hudson’s Bay stores across Canada. Customers reported empty shelves and malfunctioning escalators in some locations. Iconic Hudson’s Bay striped wool blankets have already sold out in many stores.
In Vancouver, longtime customers expressed sadness about the store closures. However, many admitted they no longer shopped there due to high prices and outdated products.
Historian Stephen Bown noted that Hudson’s Bay played a crucial role in shaping Canada’s history. “Without a visible reminder of its existence, its legacy may be lost.”
More…
- https://www.forbes.com/sites/pamdanziger/2025/03/18/liquidation-sale-at-all-80-canadian-hudsons-bay-stores-could-begin-today
- https://www.cbc.ca/news/business/hudon-s-bay-department-store-1.7486167
- https://www.ctvnews.ca/business/article/empty-shelves-idle-escalators-shoppers-look-for-piece-of-history-at-the-bay-stores
