Thunder Bay, Ont., Business Faces Uncertainty After Hudson’s Bay Seeks Creditor Protection
An Indigenous-led business in Thunder Bay, Ont., is grappling with a major financial setback following Hudson’s Bay Company’s recent filing for creditor protection.
The historic retailer, burdened with nearly $1 billion in debt, has halted payments to nearly 2,000 creditors as it undergoes court-supervised restructuring.
Jason Thompson, owner of Superior Strategies Inc., is among those affected. Through his Warrior Office division, he supplied thermal printer rolls to Hudson’s Bay, expecting payment of over $80,000. Despite multiple assurances that funds were forthcoming, he now faces uncertainty over whether he will ever be paid.
The financial strain has been severe for Thompson’s business, which had already spent $55,000 on supplier costs to fulfill the order. Initially, the contract seemed like a growth opportunity—especially as Hudson’s Bay first reached out on Sept. 30, 2023, National Day for Truth and Reconciliation.
“I was assuming Hudson’s Bay was doing some good things around reconciliation,” Thompson told CBC. “Being a smaller business, I [saw] this as an opportunity to grow.”
What began as a promising partnership has now turned into a financial burden. Thompson had negotiated a 90-day payment term, reduced from Hudson’s Bay’s original request of 120 days. However, when the expected payment failed to arrive at the end of January 2024, he started pressing for answers.
Initially, he received responses, including communication with Hudson’s Bay CEO Liz Rodbell. A finance department representative assured him a payment plan was in place, with installments beginning in April. But as the first payment deadline approached in early March, communication from the company stopped.
On March 7, Hudson’s Bay announced its filing under the Companies’ Creditors Arrangement Act (CCAA), effectively freezing payments to suppliers while restructuring its debts. Court filings indicate the company may close up to half of its 80 stores as part of the process.
While CCAA protection allows businesses to reorganize and avoid bankruptcy, small vendors often receive only a fraction of what they are owed—sometimes less than 20 cents on the dollar.
In a statement, Rodbell explained the company’s decision:
“Earlier this year, we worked with potential investors to refinance a portion of our credit facilities to improve our liquidity and support our business plan. However, the threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions,” she said.
Hudson’s Bay acknowledged in a statement to CBC that the decision was difficult but necessary.
“As part of the CCAA process, payments to creditors including vendors are stayed at this time,” wrote Tiffany Bourré, vice president of corporate communications. “The company is exploring strategic alternatives and engaging stakeholders to explore potential solutions to preserve and restructure its business.”
Hudson’s Bay has long been entwined with Indigenous history. During the fur trade era, the company’s reliance on Indigenous communities led to economic dependence, disruption of traditional ways of life, and widespread displacement. More recently, the company has pledged $30 million over ten years to support Indigenous communities and reconciliation efforts.
However, Thompson now questions these corporate commitments to Indigenous economic reconciliation. With Indigenous vendors left in financial limbo, he wonders what those promises truly mean.
“The horrors and atrocities and the trials and tribulations for us Indigenous people are well documented. Yet, this is how [they’re] going to continue to proceed without even entering into any dialogue with us,” said Thompson.
“Hudson’s Bay has been around for such a long time and is a big part of Canada’s history. I’m hoping there will be a plan. But I really hope the focus is on ensuring that small companies are looked after.”
