Hudson's Bay Company, Canada’s oldest company, has plunged itself deep within the financial quagmire, announcing plans for creditor protection under the Companies Creditors Arrangement Act (CCAA) amid mounting debts of nearly $1 billion. Not only is this decision pivotal for the 400-year-old retailer itself, but it also casts shadows on numerous small businesses, particularly Indigenous-operated ones, which rely heavily on the giant for their survival.
Jason Thompson, owner of Superior Strategies Inc., found himself facing significant financial setbacks due to his dealings with Hudson's Bay. His firm, which supplies thermal printer rolls, is owed over $80,000 following fulfilled orders worth $55,000—a partnership he initially welcomed as it aligned with the sentiments of the National Day for Truth and Reconciliation when Hudson's Bay first reached out on September 30, 2023. "I was assuming Hudson's Bay was doing some good things around reconciliation," Thompson remarked, reflecting his grim turn of fortune from growth potential to steadfast uncertainty.
Thompson was told his payments would arrive by the end of January 2024 after negotiating a 90-day payment term with Hudson's Bay—much reduced from the company's initial 120 days. Yet, as days went by, communication from Hudson's Bay dwindled, and on March 7, 2025, the announcement came: they had filed for creditor protection. Now, nearly 2,000 creditors, including Thompson, are left hanging as Hudson's Bay freezes payments to suppliers to address its financial chaos.
Compounding the woes of the Indigenous business sector, Hudson's Bay has made it clear it would potentially close half of its 80 stores. The harsh reality of this restructuring poses substantial risks not just for retailers but also for their employees. Hudson's Bay lawyer Ashley Taylor indicated the urgency of quick decisions when discussing the company's likelihood of survival, stating, "A quick start will maximize the value of the business ... and preserve whatever chance there is of restructuring."">
Inside the Ontario Superior Court, concerns arose not only for the retailer's future but also for the thousands of workers whose livelihoods depend on its survival. The proposed liquidation—which could last as long as 12 weeks—raises the specter of mass terminations reminiscent of the collapse of Sears Canada, noted Andrew Hatnay, who represented the workers. "Once liquidation starts, it becomes a self-fulfilling prophecy... the business will be finished," he commented, amplifying fears for those confronting sudden job loss.
With significant market uncertainties fueled by trade wars and dips in consumer spending, Hudson's Bay's situation deteriorated rapidly. The retailer had even deferred its payments, struggling to meet its payroll obligations, with reports of bailiffs attempting to seize merchandise from their Toronto locations. Underlying these troubles were earlier funding attempts falling through, leaving the company scrambling to find another financial lifeline.
Beyond the 80 main stores, Hudson's Bay's liquidation strategy targets three Saks Fifth Avenue stores and 13 Saks Off 5th locations, significantly impacting retail dynamics across Ontario—where 32 of the stores are concentrated. The ramifications extend to the retailer's entire inventory, estimated at approximately $315 million, and its e-commerce component. Gift cards will become obsolete post-April 6, leaving customers with nearly $24.2 million of unsuspecting value locked away.
On another level, Hudson's Bay has professed its commitment to reconciliation—having pledged $30 million over the next decade to address the grievances stemming from the Indian residential school system. Yet, actions tell another story, as the fall-out against Indigenous partners like Thompson leaves many questioning the impact of such promises. "What does [Hudson's Bay's commitment] truly mean?" Thompson has posed, citing the uncertainty and lack of communication as he and many others remain anxious over their fates.
Despite the retailer’s longstanding history tied to Indigenous land and commerce, their current plight reveals significant cracks. From the fur trade era to now, the reliance upon Indigenous communities is fraught with economic disruption and dependence. The hope remains alive among affected businesses, like Thompson’s Superior Strategies Inc., for Hudson's Bay to pull its operations back together, but the reality of creditor protection and potential liquidation hangs heavily as court hearings loom.
Every passing day solidifies the tension within Canadian retail history—an intersection of commercial interests, Indigenous futures, and the ramifications of capitalism during unprecedented times. With Hudson's Bay still pursuing agreements and strategies for survival, all eyes will be trained on how its story folds, especially when the lives and aspirations of many, including Indigenous businesses, are intertwined with its legacy.
