Hudson’s Bay Company has signaled its readiness to take the next major step in its creditor protection and restructuring process, significantly reshaping Canada’s commercial retail real estate market and resulting in major job losses. On Friday, March 14, 2025, the Canadian department store retailer announced a "store-by-store liquidation process" would commence as soon as this week.
The company filed additional documents with the Ontario Superior Court of Justice indicating it has only secured limited debtor-in-possession financing, necessitating the "full liquidation of the entire business." If the court order is received on Monday at the 'comeback motion', store liquidations will begin next week. According to Hudson’s Bay, it intends to conclude the liquidation process by no later than June 15, 2025, at which point its store locations will also close.
Currently, Hudson’s Bay operates 88 full-line stores, three Saks Fifth Avenue stores, and 13 Saks OFF 5th stores across Canada. These include 32 Hudson’s Bay locations in Ontario, 16 in British Columbia, 13 in Alberta, and others scattered throughout Quebec, Manitoba, Nova Scotia, and Saskatchewan. The company employs around 9,400 people, 647 of whom are unionized. This announcement marks the most significant development since Hudson’s Bay sought creditor protection under the federal Companies’ Creditors Arrangement Act (CCAA) on March 7, 2025, which the court granted for an initial period of 10 days.
The next court hearing is scheduled for March 17. Liz Rodbell, president and CEO of Hudson’s Bay, remarked on the situation, stating, "Our team has worked incredibly hard to identify a viable path forward, and our resolve is strengthened by the overwhelming support from customers and associates who have shared heartfelt stories about Hudson’s Bay and what our stores have meant to them, their families, and their communities across the generations." Despite the bleak outlook for the company founded in 1670, Hudson’s Bay remains hopeful about engaging stakeholders, particularly landlords, to explore alternative restructuring paths to preserve jobs and retail tenancies.
Some of Hudson’s Bay’s most significant locations are tied up in a joint venture with RioCan Real Estate Investment Trust. Hudson’s Bay owns 78 percent of this partnership, which has various locations across Canada. Among these, the downtown Vancouver flagship store carries the largest mortgage, totaling $202 million, maturing at the end of April 2025.
The company’s financial troubles became more apparent when it attempted to secure refinancing for its debt earlier this year after having engaged with lenders throughout 2025. Hudson’s Bay had previously secured a $200 million loan from Cadillac Fairview, reducing its balance to $176 million, but as of January 1, 2025, had only about $3 million cash on hand.
With approximately $1.294 billion in secured debt obligations, Hudson’s Bay has begun implementing cost-cutting measures over the past couple of years, resulting in workforce reductions and budget cuts with the goal of reducing administrative expenses by $100 million. These cuts have left many customers noticing deteriorations at store locations, particularly the Vancouver flagship, which has faced challenges like closed escalators and lighting issues.
Meanwhile, shoppers have rushed to purchase Hudson’s Bay point blankets after the company announced all stores might close if no last-minute rescue occurs. The point blanket, produced since 1779, plays a significant role not only in the company’s history but also within Canada itself, serving as part of the rich narrative between European settlers and Indigenous peoples. Many customers sought out these blankets at stores like Victoria’s Bay Centre, hoping to obtain one before they sell out. This indicates the cultural significance the products hold for many Canadians.
The Hudson's Bay Company point blanket served as both trade items and symbols throughout Canadian history; at times, they were exchanged for beaver pelts during the height of the fur trade. It's noted the blankets are tied to complex historical transactions involving Indigenous groups, such as the case where James Douglas, chief factor for Hudson’s Bay, exchanged blankets valued at £100 for land from the W̱SÁNEĆ people.
With Hudson’s Bay redirecting all proceeds from sales of the Multistripe Point Blanket to Indigenous cultural initiatives since 2022, the story ties back to both past and present sensibilities about Canadian history. Customers are eager to acquire this storied product as they sense its potential to become even more precious artifacts of heritage as the company navigates its uncertain future.
With Hudson’s Bay’s next scheduled appearance in court on March 17, the events will be closely watched, not just for the company's fate but also for the overall impact on the retail sector and the communities it has served across generations. Decisions made during this process will significantly change Canada's retail marketplace, as Hudson’s Bay's longstanding presence draws to a close.