Hudson’s Bay to Begin Liquidating All Stores Except These 6 Starting Monday
Hudson’s Bay to Liquidate Majority of Stores, Sparing Six Locations—for Now
After a frantic week searching for a financial lifeline, Hudson’s Bay—Canada’s oldest company—has secured approval to keep six of its stores open temporarily, while it begins liquidating the rest of its locations starting Monday.
On Friday, Ontario Superior Court Justice Peter Osborne approved the retailer’s proposal, enabling Hudson’s Bay to start liquidation sales at most of its 80 department stores across Canada, along with three Saks Fifth Avenue and 13 Saks Off 5th locations.
“This is the art of the possible,” Osborne remarked in court. “There is no other alternative but to approve the liquidation effective immediately to maximize the chances of success.”
The court’s decision may preserve some of the 9,364 jobs previously at risk, as strong sales over the past week allowed the company to retain six stores. The saved locations include the flagship store on Toronto’s Yonge Street, as well as stores in Yorkdale and Hillcrest malls in Ontario. Three more will remain open in Quebec: Montreal, Carrefour Laval, and Pointe-Claire.
While Hudson’s Bay did not disclose exact discount levels, liquidation sales will run through June 15, with stores vacated by June 30. Lawyer Ashley Taylor, representing the company, said more locations could be spared from closure if a viable restructuring solution is found swiftly. Otherwise, even the six remaining stores will face liquidation.
The decision follows Hudson’s Bay’s filing for creditor protection on March 7. The company cited mounting financial strain, including reduced consumer spending, post-pandemic declines in foot traffic, and deferred payments to landlords and suppliers. It recently sought emergency financing to stay afloat.
The uncertainty surrounding the fate of the 355-year-old retailer prompted a surge in sales, particularly of its iconic striped point blankets. Between March 8 and 14, Hudson’s Bay generated $21 million in revenue—exceeding expectations by $7.4 million—helping it meet rent obligations and repay $16 million in bridge financing from Restore Capital.
The cash infusion enables the company to continue paying up to $7 million per month in rent to a joint venture with RioCan Real Estate Investment Trust, and focus on securing further investment or a buyer for valuable assets like store leases and its intellectual property.
However, time is tight. “We continue to work hard to find a long-term solution,” Taylor said, warning that the window to do so is “very short.”
During the liquidation process, Hudson’s Bay has paused its loyalty program, which holds an estimated $58.5 million in unused points across 8.2 million Canadian members. Gift cards totaling $24.2 million will no longer be accepted after April 6. All sales at liquidating stores will be final.
Justice Osborne acknowledged the complexity of balancing the company’s need to sell off inventory while preserving the value of its remaining assets. “I want to make sure we haven’t sold the jewels in the crown … to make a better outcome impossible,” he said earlier in the week.
The proceedings featured input from a wide range of stakeholders, including landlords, suppliers, and union representatives. Some, like employee lawyer Andrew Hatnay, criticized the speed of the process and the limited scope of store preservation.
“We will see how this works out, but even if they pull something out of their hat, stores are still going down,” Hatnay said, emphasizing the wider impact on workers’ benefits, pensions, and severance. More than 21,000 current and former employees are enrolled in the company’s fully funded pension plan, though many are not expecting severance, which could have totaled $100 million.
“This is melancholy,” Hatnay concluded. “This is the demise of HBC—slowly but surely.”
