Hudson’s Bay Announces Immediate Liquidation of Entire Business
Hudson’s Bay Plans Full Liquidation, Threatening Thousands of Jobs and Canada’s Retail Landscape
Analysts warn that Hudson’s Bay’s impending liquidation will leave a significant void in Canada’s retail sector as the country’s oldest company prepares to wind down operations in the coming months—unless a last-minute rescue emerges.
Retail experts attribute the department store chain’s downfall to years of mismanagement, citing outdated stores, maintenance issues, and inconsistent hours that alienated customers.
Founded in 1670, Hudson’s Bay operates 80 stores nationwide. Despite exhaustive efforts to secure financing, the company announced Friday night that it will begin liquidating as soon as next week, pending court approval. If the process proceeds as planned, all stores—including three Saks Fifth Avenue and 13 Saks Off 5th locations under its license—will close by June, impacting 9,364 employees.
A Slow Decline
Retail strategist Liza Amlani noted that customers likely noticed declining investment in Hudson’s Bay stores, from broken escalators to air-conditioning failures. She also criticized the company’s inconsistent store hours, which often failed to align with shopping malls.
“In tourist destinations like the Eaton Centre, for example, if the store is closed while the mall is open, that’s a problem,” Amlani said. “Customers notice these things and spread the word.”
Despite the dire outlook, Hudson’s Bay executives insist they are working with key stakeholders, particularly landlords, to find a path forward.
“Our team has worked incredibly hard to identify a viable path,” CEO Liz Rodbell said in a statement, citing support from customers and employees.
A History of Corporate Missteps
Though it remains a Canadian icon, Hudson’s Bay has been under American leadership for decades. U.S. real estate mogul Richard Baker acquired the company in 2008 for $1.1 billion, and retail expert Joanne McNeish argues that was the turning point.
“Investment firms are like house flippers,” McNeish said. “They rarely deal with underlying business issues. Instead, they take profits, pass problems to the next buyer, or break up the company for asset sales.”
Baker took the company public in 2012, then privatized it again just before the COVID-19 pandemic, frustrating shareholders who believed Hudson’s Bay’s real estate holdings still had immense value.
“If management had been allowed to make the necessary investments, the company could have remained a strong competitor,” McNeish added.
Financial Woes and Legal Battles
Hudson’s Bay filed for creditor protection last week, revealing it owes over $950 million to landlords, suppliers, and brands such as Ralph Lauren, Chanel, Columbia Sportswear, Diesel, and Estée Lauder.
Court documents show the company secured only limited debtor-in-possession financing—emergency funding for restructuring—and stated that without an immediate liquidation, it wouldn’t be able to meet financial obligations. The proposed liquidation deadline is June 15.
Unifor, the union representing about 320 Hudson’s Bay employees in Windsor, Kitchener, Sherwood Gardens, and its Toronto e-commerce warehouse, has urged the company to ensure workers receive fair severance and benefits.
“Workers’ livelihoods are on the line,” Unifor President Lana Payne said. “They deserve full transparency from HBC.”
A Major Shift in Canada’s Retail Landscape
Hudson’s Bay’s closure would leave large anchor spaces vacant in malls and prime real estate locations across Canada. The retailer operates 32 stores in Ontario, 16 in British Columbia, 13 in Alberta and Quebec, and smaller footprints in Manitoba, Nova Scotia, and Saskatchewan.
While the situation remains bleak, industry observers say the retailer’s historic struggles, coupled with shifting shopping habits, may have made its downfall inevitable.
