Nothing left to mourn. Empty shelves are seen at a Hudson's Bay in Toronto on Monday, March 17, 2025.
Hudson’s Bay, Canada’s oldest company, has received court approval to start liquidating most of its stores. The Ontario Superior Court ruling on Friday allows the retailer to begin clearance sales at 80 Hudson’s Bay locations, three Saks Fifth Avenue stores, and 13 Saks Off 5th shops.
Despite the grim outlook, six stores will remain open—for now. These include the flagship Yonge Street store in Toronto, as well as locations in Yorkdale Mall, Hillcrest Mall, and three Quebec stores in Montreal, Laval, and Pointe-Claire.
Liquidation Begins, but Hope Remains
The court’s decision signals a lifeline for some employees. If more financing emerges, additional stores could be saved. However, if no restructuring solution is found soon, the six spared locations could also be added to the liquidation list.
Discount sales will continue until June 15, with stores vacated by June 30. The company has not revealed how deep the markdowns will be.
What will be the Future of Hudson’s Bay? — A Desperate Fight for Survival
Hudson’s Bay has been struggling with declining sales, unpaid debts, and post-pandemic consumer shifts. The company filed for creditor protection on March 7, citing financial distress. Rising trade tensions between Canada and the U.S., falling foot traffic in downtown stores, and overdue payments to landlords and suppliers pushed the brand toward bankruptcy.
Despite these challenges, the company experienced a surge in sales between March 8 and 14. Customers rushed to buy home goods, apparel, and the retailer’s iconic striped blankets, generating $21 million—exceeding projections by $7.4 million.
The revenue boost allows Hudson’s Bay to pay up to $7 million monthly in rent to RioCan Real Estate Investment Trust and settle a $16 million financing debt with Restore Capital. However, time is running out to secure a long-term financial solution.
Six stores are now able to be saved because the looming liquidation triggered a flurry of sales from customers looking to snap up Hudson's Bay's famed striped products and other home goods and apparel. CBC News source
A Retail Icon on the Brink
Olivia Glauberzon, owner of maternity activewear brand After9, described the situation as unfortunate. She pulled her inventory from Hudson’s Bay stores in Toronto, citing a lack of prioritization for the retail experience.
As liquidation begins, customers will notice key changes. Hudson’s Bay has paused its loyalty program, which has 8.2 million members with $58.5 million in unused points. It will also stop accepting the $24.2 million in outstanding gift cards after April 6. Additionally, all sales will be final at closing locations.
The Court’s Balancing Act for Hudson’s Bay
Judge Peter Osborne had to consider multiple factors before approving the liquidation. While Hudson’s Bay needs cash, the company must also ensure that valuable assets—such as store leases and intellectual property—aren’t sold off hastily.
The case attracted dozens of lawyers representing various stakeholders, including landlords, creditors, and unpaid vendors. Property owners expressed concerns about large retail spaces sitting vacant, which could impact foot traffic in malls.
Hudson’s Bay’s legal team assured the court that it is actively seeking investors. Despite reaching out to 19 lenders, no viable offers have materialized, making liquidation the only option for now.
Employees Left in the Dark
While six stores remain open, over 9,000 employees still face potential job losses. Many workers are worried about their future, with little hope for severance pay.
Kevin Grell, an e-commerce processor at Hudson’s Bay’s Scarborough distribution center, said the situation is devastating. “I was planning to work until 65 and retire, but now that seems impossible,” he said. “At my age, it’s difficult to find a new job.”
Unions have warned employees not to expect severance, as they fall low on the list of financial priorities. Lawyer Andrew Hatnay, representing the workers, criticized the fast pace of the liquidation process, arguing that it didn’t allow enough time to explore alternative solutions.
The End of an Era?
Hudson’s Bay’s pension plan covers 21,000 past and present employees across multiple brands, including Zellers, Kmart Canada, and Simpsons. The plan is currently fully funded, but with liquidation underway, its future remains uncertain.
“This is not a good news story,” Hatnay told the court. “This is the slow demise of Hudson’s Bay.”
