Hudson’s Bay, Canada’s oldest retail company, is facing a heartbreaking transformation as it prepares to close most of its Canadian stores due to overwhelming financial challenges. Founded in 1670, the historically significant retailer has become emblematic of Canadian culture and shopping. However, an Ontario court has granted Hudson’s Bay permission to start liquidating all but six of its stores as part of a restructuring plan aimed at salvaging the remains of this once-iconic retailer.
On March 21, 2025, Ontario Superior Court Judge Peter Osborne approved the company’s motion to liquidate the majority of its 80 Hudson’s Bay stores, three Saks Fifth Avenue locations, and 13 Saks Off 5th shops across Canada, starting on Monday, March 24, 2025. The approved plan allows for the liquidation process that will run through June 15, 2025, with all stores slated for closure vacated by June 30, 2025.
The six stores that will remain open include the flagship Hudson’s Bay store on Yonge Street in Toronto, as well as additional stores in Yorkdale Mall and Hillcrest Mall in Richmond Hill, Ontario. The firm will also keep three stores operational in Quebec: locations in Montreal, Carrefour Laval, and Point-Claire.
This decision comes on the heels of the company filing for creditor protection on March 7, 2025, citing significant financial distress exacerbated by a combination of factors such as a decline in consumer spending, Canada-U.S. trade tensions, and a noticeable drop in foot traffic in downtown locations post-pandemic.
Hudson’s Bay lawyer Ashley Taylor commented in court that while some stores remain open for business, the future remains precarious. “If a solution can be found, there is an opportunity to pull additional stores out of the liquidation, but if a restructuring solution is not found very quickly, (the six) will be added to the liquidation sale,” she cautioned.
As the liquidation process begins, customers can expect deep discounts on products as the retailer aims to move merchandise quickly. However, all sales at the liquidating stores will be final. Concurrently, Hudson’s Bay is undertaking efforts to explore options for selling off assets, including leases, to further mitigate its financial obligations.
For employees, the looming liquidation has precarious implications. Hudson’s Bay employs roughly 9,364 people across the nation, and the decision to liquidate reduces the potential job losses that would have occurred had the company proceeded with the original plan to close all stores. Retail analyst Bruce Winder noted that the ongoing situation is especially concerning, as the company has paused its loyalty program, jeopardizing $58 million worth of points accumulated by its customers.
The company is under intense scrutiny following court revelations about its finances. As of January 1, it owed over $1 billion, with trade payables of $315 million, secured debt of $422 million, and $724.4 million in mortgage obligations. With only $3 million in cash available, Hudson’s Bay faces daunting challenges moving forward.
Many consumers, some of whom have frequented Hudson’s Bay stores for generations, are lamenting the loss of a beloved retail institution. Shopping malls suffer from the fluctuating demands of online shopping, and experts worry that the closures signal a troubling trend in the retail landscape. Brenda Kerr, a customer, expressed her sadness with the sentiment, “I really feel, unfortunately, that this is the death of malls. It’s the end of an era.”
Hudson’s Bay officials are hopeful that the public outcry will draw consumers into their stores in a bid to support a struggling brand. The remaining stores are now relying on high foot traffic to maintain operational viability. Customer interest has spiked at the stores slated for liquidation, although it remains uncertain if this surge will translate to sustained sales.
The next weeks will be crucial for Hudson’s Bay as it strives to establish a long-term solution for its survival while navigating a complicated retail landscape. “We will continue to work hard to find a more long-term solution for our financial woes, but warned the window to achieve this ‘remains very short,'” Taylor stated as she addressed the court. The outcomes of their efforts in the coming days will determine the fate of the remaining six Hudson’s Bay stores and possibly affect the fate of the entire chain.
As consumers reflect on the impending changes, the nostalgia for a long-cherished national institution is palpable. With Hudson’s Bay now standing at a critical crossroads in its storied history, all eyes remain on how the final chapter of this iconic company will unfold.
