Toronto, Ontario, Canada (WNEWS) – Hudson’s Bay Company (HBC), the 354-year-old department store chain, is on the brink of closure, with liquidation sales set to begin next week unless last-minute funding emerges. A draft court order has set a final sale deadline (“Sales Termination Date”) of June 15, 2025, signaling what could be the end of one of Canada’s most historic retail institutions.
Financial Struggles and Creditor Protection
Earlier this month, Hudson’s Bay sought protection under the Companies’ Creditors Arrangement Act (CCAA) as it struggled with mounting debt, plummeting in-store traffic, and the long-term effects of changing consumer habits. The move came after years of efforts to modernize operations, shift toward e-commerce, and reduce overhead costs. However, despite aggressive restructuring attempts, the company failed to secure sufficient capital to keep its stores open.
Late Friday, the company announced that they had filed an application to seek permission to conduct full liquidation proceedings. The company cited that they had only secured limited debtor-in-possession financing, necessitating the full liquidation of the entire business.
If no alternative funding is found, Hudson’s Bay will begin a store-by-store liquidation process as early as next week. While the company remains hopeful that key stakeholders—especially landlords and creditors—might still negotiate a restructuring path, the outlook remains grim.
The Company remains hopeful that key stakeholders, particularly its landlord partners, will engage to explore a viable alternative restructuring path that could preserve jobs, tenancy in retail locations, and a company with deep historic significance before it is too late. This alternative would necessitate significant capital and immediate and substantial cooperation from landlords and other critical partners.” – Hudson’s Bay Press Release – March 14, 2025 – BusinessWire
Currently, Hudson’s Bay operates 80 department stores across Canada, employing approximately 9,364 workers, all of whom now face uncertainty. The potential liquidation will not only impact the thousands of employees directly but also have far-reaching consequences for shopping malls, suppliers, and communities where HBC has been a retail mainstay for generations.
The Impact on Canadian Retail and Shopping Malls
The loss of Hudson’s Bay will be a massive blow to an already volatile Canadian retail industry. Over the past decade, Canada has seen the closure of multiple legacy retailers, including Sears Canada (2017), Target Canada (2015), and Zellers (2013). The shrinking presence of department stores has left large vacancies in malls and contributed to a shift in shopping habits.
With Hudson’s Bay exiting the market, malls across the country will lose a major anchor tenant, further accelerating the transformation of retail spaces into mixed-use developments that incorporate entertainment, residential, and office spaces. Shopping centers, particularly in mid-sized cities and suburban areas, may struggle to find another tenant capable of filling the same footprint and drawing foot traffic.
This move also raises concerns about the viability of large-format retail in Canada. The department store model, once a dominant force, has been steadily eroded by e-commerce giants like Amazon, fast-fashion retailers, and the growing preference for direct-to-consumer brands. The closure of HBC could mark the final chapter in Canada’s traditional department store era.
Impact of Job Losses on the Canadian Economy
The impending closure of Hudson’s Bay threatens the livelihoods of approximately 9,364 employees across its 80 Canadian locations. Beyond the direct job losses, the ripple effects could be substantial, affecting suppliers, logistics providers, and local economies dependent on these retail operations.
The timing of Hudson’s Bay’s financial crisis coincides with escalating trade tensions between Canada and the United States. President Donald Trump’s recent imposition of 25% tariffs on Canadian imports has exacerbated economic uncertainties. A recent poll indicates that 40% of Canadians are now concerned about job security, reflecting widespread anxiety amid the trade dispute.
The manufacturing sector, particularly industries reliant on cross-border trade, is experiencing significant strain. The tariffs have led to increased operational costs, reduced competitiveness, and in some cases, layoffs. For instance, the Canadian oilfield drilling and services sector, which had been recovering from previous downturns, is now facing potential setbacks due to the proposed tariffs, leading to slowed customer decision-making and activity in the sector.
Furthermore, the Bank of Canada is anticipated to reduce its main interest rate for the seventh consecutive time, prompted by trade policy uncertainties and economic tensions between Canada and the U.S. This move reflects the broader economic challenges facing the country amid the ongoing trade turmoil.
Historical Significance and Previous Challenges
Founded in 1670, Hudson’s Bay began as a fur trading enterprise before evolving into Canada’s most recognizable retail brand. It has been a staple in the nation’s shopping landscape for centuries, surviving wars, economic downturns, and the rise of modern retail chains.
However, the company’s struggles began long before this latest financial crisis. In recent years, it has downsized operations, closed underperforming locations, and attempted a digital transformation. In December 2024, Hudson’s Bay spun off its Saks Fifth Avenue division, merging it with Neiman Marcus Group to form Saks Global. That entity remains financially stable and is not affected by the Hudson’s Bay liquidation.
Despite these strategic moves, HBC’s attempts to keep pace with a rapidly changing retail environment have largely failed, leading to declining sales, increased debt, and an inability to compete with online-first retailers.
What’s Next?
As liquidation sales prepare to launch, shoppers will likely see deep discounts at Hudson’s Bay locations as stores work to clear out inventory. This will provide a temporary boost in sales, but it also marks the end of an era for one of Canada’s most storied brands.
Industry analysts believe that while the brand name may survive in some form—perhaps through licensing deals or a shift to an online-only model—the physical stores themselves are unlikely to be saved unless a last-minute investor steps in with a viable turnaround strategy.
For employees, the future remains uncertain, with many expected to seek employment in other retail sectors or transition to new industries. The broader retail industry will also have to adjust, as landlords scramble to fill vacant spaces and consumers continue shifting their shopping habits online.
A Retail Giant’s Final Days?
With a history spanning more than three centuries, Hudson’s Bay was more than just a department store—it was an institution woven into Canada’s cultural and economic fabric. The looming closure will leave a major gap in Canada’s retail scene, symbolizing the accelerating decline of traditional retail in favor of digital commerce and new shopping trends.
The coming weeks will be critical in determining whether Hudson’s Bay can survive in some form or if it will fade into history, like so many other fallen retail giants before it.
