Hudson’s Bay to Close Most Canadian Stores Starting March 24

Hudson’s Bay Company will begin liquidating all but six of its retail locations across Canada, starting Monday, March 24. The move follows a ruling from the Ontario Superior Court, where Judge Peter Osborne approved the company’s request to proceed with sales to help manage severe financial distress.

This step marks a critical turning point for Canada’s oldest company, originally founded in 1670.

Which Hudson’s Bay Stores Will Stay Open?

Only six Hudson’s Bay locations will remain open:

Toronto (Yonge Street flagship)
Yorkdale Mall (Toronto)
Hillcrest Mall (Richmond Hill, ON)
Montreal
Carrefour Laval
Pointe-Claire, Quebec

These stores are temporarily spared due to a recent spike in sales. However, their future depends on Hudson’s Bay finding a long-term financial solution.

Why Is Hudson’s Bay Liquidating?

The company filed for creditor protection on March 7, citing declining foot traffic, rising debt, and post-pandemic retail challenges. It struggled to pay landlords and suppliers, prompting a search for emergency financing. According to court filings:

Sales between March 8 and 14 generated $21 million, surpassing expectations by $7.4 million.
The cash helped repay $16 million in loans from Restore Capital and meet rent obligations tied to a joint venture with RioCan Real Estate Investment Trust.

Despite short-term relief, Hudson’s Bay still lacks a sustainable plan to avoid deeper closures.

Hudson’s Bay Stores Affected by Liquidation

The liquidation includes:

Roughly 80 Hudson’s Bay stores
Three Saks Fifth Avenue locations
Thirteen Saks Off 5th outlets

These stores will close by June 30, 2025, after clearance sales end on June 15. All purchases during this period will be final. Gift cards will no longer be accepted after April 6. The loyalty program, used by 8.2 million Canadians, has been paused.

What Happens to Employees?

The company employs over 9,000 staff across Canada. While some positions may be saved at the six remaining stores, most employees are facing job losses. Workers report confusion and concern about losing pensions, severance, and other benefits.

Kevin Grell, an e-commerce employee in Scarborough, said:

“Everybody’s worried. Some are angry. It’s hard, especially at my age.”

Union representatives say severance payouts are unlikely, as they rank low among creditor claims. According to court records, Hudson’s Bay’s employee pension plan is fully funded, but ongoing benefits remain uncertain.

What About the Real Estate?

The company is now looking to sell or transfer leases and other valuable assets. Lawyers representing landlords worry the closures could disrupt shopping malls and reduce foot traffic for other tenants. Legal teams involved include representatives for suppliers, mall owners, and unpaid vendors.

Hudson’s Bay lawyer Ashley Taylor confirmed that they are actively seeking buyers or investors to stabilize the business but warned that time is limited.

What It Means for Canadian Retail

Hudson’s Bay’s financial decline represents more than a corporate restructuring. It signals a larger shift in Canadian retail, where department stores face rising competition from online shopping and changing consumer habits.

Many see this moment as the end of an era for traditional brick-and-mortar retail in Canada.

Starting March 24, liquidation sales will begin at most Hudson’s Bay locations across the country. Shoppers can expect discounted items, but also the closure of a historic retail chain that has operated for over three centuries.

As the company attempts to restructure, the survival of its six remaining stores depends on urgent financing or a new business model. Meanwhile, thousands of employees await clarity on their future.

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