It's official: Hudson's Bay to liquidate, and close all but six stores | Daily Hive

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Hudson’s Bay Company, the oldest company in North America and a Canadian retail institution, is officially shutting down nearly all of its locations.

Following a hearing today with the Ontario Superior Court of Justice, the company will undergo liquidation, marking the end of an era for the 354-year-old retailer.

Liquidation fire sale prices of its merchandise at impacted stores and the e-commerce website will officially begin on Monday, March 24, 2025.

Only six stores will be retained — at least for the time being. All six locations are located in Ontario and Quebec, including the retention of the heritage building flagship stores in downtown Toronto and downtown Montreal, and four suburban shopping mall locations.

Among the largest and most prominent locations, the heritage building flagship stores in downtown Vancouver and downtown Calgary will close.

In accordance to the court approval, the company will repay its debtor-in-possession financing provided by Restored Capital LLC, an affiliate of Hilco Global, and other lenders.

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Based on the approved plan by the court, a total of 74 Hudson’s Bay stores will close after this process is over, including prominently located stores that are dated and in poor condition following years of deferred maintenance practices and would require major reinvestment — capital that the company does not have.

Early in the federal Companies’ Creditors Arrangement Act (CCAA) proceedings, which began nearly two weeks ago, the company considered closing between half and all of its store locations, depending on the success of its last-minute attempts to secure interim financing from financial institutions and other lenders.

Instead of a full closure in the coming months, the company is now able to retain the six select locations due to higher-than-expected sales revenue in recent weeks, driven by customers purchasing more merchandise amid news of the retailer’s likely imminent demise.

“Canadians have shown extraordinary support for Hudson’s Bay over the last two weeks and overwhelmed us with their encouragement and endearment for the brand. We are extremely fortunate to have such an engaged community behind us,” said Liz Rodbell, president and CEO of Hudson’s Bay, in a statement on Friday evening, following the court’s liquidation approval earlier in the day.

“Our associates have been met with extraordinary kindness from our customers — each of whom reflects the cherished relationships we have built together over generations.”

As the liquidation of merchandise progresses, all impacted store locations across the country will gradually shut down within the next three months — no later than the end of June 2025 — as the company winds down the vast majority of its operations.

Meanwhile, alongside the liquidation process, the company will collaborate with commercial real estate firm Oberfeld Snowcap to market and sell its leases and properties, generating additional interim operating revenue.

However, the release of such a substantial volume of commercial retail space is poised to disrupt the market as city centres, malls, and other retail hubs continue to reel from the closures of Nordstrom, Sears Canada, and even Target Canada.

There have also been suggestions of creating new ancillary revenue by licensing the company’s iconic multi-coloured stripes for products and other goods — a brand and design tracing back to its founding in the North American fur trade over three centuries ago.

Hudson’s Bay’s demise follows years of financial struggles and shifting consumer habits that have challenged traditional brick-and-mortar retailers. However, retail industry critics argue that the company also failed to reinvest in its stores and proactively adapt quickly enough to the changing industry with new competitors.

Shoppers will have a final chance to visit the iconic stores as heavily discounted sales roll out nationwide. These will be final sales.

It should also be noted that the retailer has already suspended its loyalty program, with over 8.2 million customers holding about $59 million in unused points. Gift cards will only be accepted until April 6, 2025.

Hudson’s Bay has a total of 96 locations across Canada, including 80 Hudson’s Bay full-line department stores, three Saks Fifth Avenue stores, and 13 Saks OFF 5th stores. This includes 32 Hudson’s Bay full-line department stores in Ontario, 16 in British Columbia, 13 each in Quebec and Alberta, and two each in Saskatchewan, Manitoba, and Nova Scotia. The full-line and outlet Saks stores will also close as a part of the liquidation proceedings.

As of early March 2025, the company had approximately $315 million of merchandise inventory, including about $58 million located in its four distribution centres, with one warehouse in B.C. and three in Ontario.

The company is liquidating its inventory as a last resort after failing to secure interim financing, with the court first granting Hudson’s Bay creditor protection on March 7, 2025, through the CCAA. It initially provided the retailer with 10 days, and several additional court hearings have been held since March 17.

Liquidation was expected to begin as early as March 17. However, the judge presiding over the matter deferred the decision to enable more time to consider all the information that was presented by the company, creditors, landlords, and other stakeholders.

Hudson’s Bay has been unable to pay leases, vendors, and loan obligations and was just days away from missing payroll. The company employs about 9,400 people, including 647 unionized workers. Staff at impacted locations will be terminated once stores and distribution centres close.

Hudson’s Bay had only about $3 million cash on hand in early January 2025. The company has about $1.294 billion in secured debt obligations, including $315 million in trade payables (such as merchandise brands), $422 million in pre-filing secured debt, and $724.4 million in mortgage obligations. The company has approximately $521 million in unsecured debt.

In 2024, Hudson’s Bay separated its Saks Fifth Avenue division into a separate business, which was later combined with its new acquisition of Niemen Marcus. This also follows the March 2020 decision to take Hudson’s Bay private.

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