TORONTO — Hudson’s Bay spent Monday in court asking for permission to begin a liquidation of all of its stores as early as Tuesday, March 18, 2025, even as it holds out hope of finding financial support to continue operations. But Ontario Superior Court judge Peter Osborne refrained from making any immediate decisions, stating he wanted more time to analyze the arguments presented.
Hudson’s Bay Company, known for its long-standing history as Canada’s oldest corporation founded in 1670, appeared before Judge Osborne with lawyers arguing for the liquidation of all 80 of its retail locations, alongside three Saks Fifth Avenue and 13 Saks Off 5th stores operating through licensing agreements. The proposed liquidation process could allow Hudson’s Bay to pull some stores from the process if they secure adequate financing within the next 10 to 12 weeks, as described by lawyer Ashley Taylor.
Judge Osborne noted the lengthy day was just the beginning of what could be complex deliberations, saying, “It has been a lengthy day to put it mildly and it is going to be a longer night as well,” before concluding the hearing for the time being. The courtroom was crowded, with the presence of many lawyers, media, and onlookers, leading to the opening of overflow rooms for those wishing to monitor the pivotal hearing.
The creditor protection case Hudson’s Bay filed on March 7, 2025, highlighted its current financial difficulties resulting from declining consumer spending, trade tensions between Canada and the U.S., and decreased foot traffic at downtown stores due to the pandemic's aftermath. The company revealed it was nearing the inability to meet payroll obligations and had deferred payments to various landlords, vendors, and service providers.
Compounding the company’s struggles, Hudson’s Bay reported incidents where one landlord “unlawfully locked” it out of its Sydney, Nova Scotia store, and bailiffs attempted to seize merchandise from another location at Sherway Gardens mall in Toronto, according to Jennifer Bewley, the chief financial officer for Hudson’s Bay’s parent company.
Hudson’s Bay’s original plan sought to restructure by closing half of its stores and monetizing its leases on prime retail spaces. Unfortunately, efforts to secure funding took unexpected turns. A proposed financing deal fell apart mere hours before the March 7 hearing, necessitating Hudson’s Bay to scramble for alternatives. This effort brought $16 million initially from Restore Capital, and other lenders, which increased to $23 million but was still insufficient.
“To date, the company’s efforts have failed,” Taylor stated during the hearing, providing rationale for the push toward liquidation. Judge Osborne exhibited concern, stating, “I want to make sure we haven’t sold the jewels in the crown... so to make a more favorable outcome impossible.” One of the potential outcomes Hudson’s Bay is exploring involves permitting sales of its assets to prospective buyers to support some part of its operations.
The proposed liquidation would significantly impact Ontario, which houses 32 locations and over half of the retailer's staff. Other provinces also feeling the pinch include British Columbia with 16 locations; Alberta and Quebec with 13 each; and smaller presences in Manitoba, Nova Scotia, and Saskatchewan.
Hudson’s Bay currently holds about $315 million worth of inventory and intends for the liquidation to encompass both its physical retail outlets and its e-commerce operations. Customers have been advised of changes, including the cessation of gift card acceptance after April 6, and the freeze on the loyalty program impacting over 8.2 million Canadians holding $58.5 million worth of unused points.
Andrew Hatnay, representing employees, strongly opposed the liquidation pursuit, arguing it would lead to one of the largest mass terminations Canada has seen since the fall of Sears Canada. He urged the court to postpone liquidation by at least one week, warning, “Once liquidation starts, it becomes self-fulfilling,” as customer rushes could hamper future retail viability. Hatnay, upon exiting the courtroom, expressed optimism for the workers, believing the judicial deliberations showed promise for potential restructuring.
Meanwhile, Hudson’s Bay is endeavoring to identify buyers for its properties, brands, or intellectual property, including its recognizable stripes. President and CEO Liz Rodbell stated, “Our team has worked incredibly hard to identify a viable path forward,” stressing the importance of the company’s legacy to Canadians and the urgency behind sustaining jobs and customer engagement.
Industry experts acknowledge Hudson’s Bay’s road to recovery faces uphill challenges, with one consultant remarking the need for any new financial backer to come with significant caveats. Lanita Layton, who once held influence at Holt Renfrew, predicted, “Depending on who — if anyone — does bring the financing, I don’t foresee HBC continuing in the same format.” She emphasized the need for Hudson’s Bay to possibly narrow down its operations to meet modern consumer expectations.
With liquidation potentially starting almost immediately, Hudson’s Bay's stakeholders retain hope for intervention from landlords and investors willing to collaborate on preserving what remains of this historical retailer, but time is of the essence. The fate of Hudson’s Bay—and by extension its role within the Canadian retail fabric—hangs precariously as the clock ticks down to the slated start of liquidation on March 18, 2025.
