Canada’s oldest retailer, Hudson’s Bay, has officially begun liquidation sales at all but six of its stores starting on March 24, 2025. This significant decision comes after the company filed for creditor protection earlier this month, citing mounting financial difficulties driven by declining consumer spending and shifting market dynamics. The liquidation process aims to wrap up by June 15, 2025.
The remaining six stores, which will continue operations for the time being, include the flagship store on Yonge Street in Toronto and two others in the Greater Toronto Area, as well as locations in Montreal and Quebec. However, many of Hudson’s Bay's 9,300 employees, including those at the distribution center and individual store staff, are left anxious about their job security amid this change.
Hudson’s Bay has seen substantial sales activity amid the liquidation announcement, and a report revealed that sales between March 8 and March 14 exceeded the company’s expectations by $7.4 million, reaching $21 million. Such strong sales will facilitate rent payments totaling $7 million per month and allow the company to repay $16 million in interim financing it received earlier in March.
The court approval to initiate the liquidation came from an Ontario judge on March 21, 2025, which allowed Hudson’s Bay to move forward with its plans. Ashley Taylor, a lawyer representing the company, noted that the decision to spare six stores was based on exceeding sales expectations. In-store liquidation sales are projected to conclude by June 15, with the company vacating the remaining locations no later than June 30.
Gift cards will be accepted at the liquidating stores until April 6, 2025, although loyalty points will not be recognized during this period. Additionally, Hudson’s Bay will maintain online sales through the company’s website until April 15.
While the liquidation process offers some financial breathing room for the company, the outlook for many employees is bleak. Unifor, a union representing about 600 employees across various Hudson’s Bay stores, has raised concerns regarding potential layoffs and the company’s handling of severance arrangements. Andrew Hatnay, a lawyer specializing in employment law, estimated that the layoffs could lead to severance claims exceeding $100 million.
“Everybody is worried. They’re worried, they’re scared,” said Kevin Grell, an order processor at the Hudson’s Bay distribution center in Toronto. Grell’s sentiments reflect the thoughts of many employees facing an uncertain future. “I see a lot of blankets and throws going out; water bottles, mugs, anything with the stripes,” he added, commenting on the ongoing popularity of their merchandise.
Despite the bright sales numbers, the uncertainty looms large. The company had already deferred some rent payments to landlords and struggled with dwindling customer foot traffic in downtown areas following the pandemic. Hudson’s Bay, founded in 1670, symbolizes Canadian retail history, making its current plight particularly poignant.
Many Hudson’s Bay employees have dedicated decades to the company, often representing a generational workforce. Alireza Kaveh, co-owner of Romali Jewelry, which is sold in Bay stores, expressed concern over the broader impacts of the potential layoffs, stating that it’s not just numbers but families that would be affected: “You can easily triple the number of people that are affected,” he said.
Despite employees’ worries, Hudson’s Bay president Liz Rodbell emphasized the importance of collective support during this uncertain period as the company navigates its restructuring path. “While this is a positive development, the reality is many people will be impacted by this wind-down,” wrote Rodbell in a memo to staff on March 21.
The court’s decision allows Hudson’s Bay to potentially reverse the liquidation of some stores if the financial situation improves. However, without a solid restructuring plan in place, the future for both the company and its employees remains in question. As the liquidation sales proceed amid the backdrop of economic challenges and changing retail environments, many are left hoping for a brighter future.
