End of an era: Hudson's Bay store in downtown Vancouver to close | Daily Hive

End of an era: Hudson's Bay flagship store in downtown Vancouver to close

Hudson's Bay flagship store in downtown Vancouver. (Kenneth Chan)

It’s no surprise that Hudson’s Bay Company included its historic downtown Vancouver flagship store among the 74 department store locations set to close across Canada.

An Ontario judge approved the retailer’s revised restructuring plan today, saving only just six brick-and-mortar locations in Ontario and Quebec and initiating the fire sale process of merchandise. The liquidation process at the 74 impacted stores begins on Monday, March 24, 2025, and it will end no later than June 2025.

By the start of this summer, all 16 of the retailer’s longtime department stores in British Columbia will close.

Within Metro Vancouver, beyond downtown Vancouver, Hudson’s Bay’s locations currently entail Park Royal mall in West Vancouver, CF Richmond Centre mall, Metropolis at Metrotown mall in Burnaby, Coquitlam Centre mall, Guildford Town Centre mall in Surrey, and Willowbrook Shopping Centre in Langley Township.

The region’s two Saks OFF 5th outlet store locations at Park Royal and Tsawwassen Mills will also close.

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In recent years, prior to this month’s federal Companies’ Creditors Arrangement Act proceedings, Hudson’s Bay has already closed two other longtime locations in the region.

It closed its store at Oakridge Park (Oakridge Centre) in Vancouver in 2021, which was initially intended to be a temporary closure to enable the expedited construction of the brand new mixed-use development and shopping mall.

But in November 2024, Hudson’s Bay announced it would not return to the new Oakridge Park mall, which will open later in 2025. A year earlier, in late 2023, Hudson’s Bay also closed its store at the City of Lougheed mall (Lougheed Town Centre) in Burnaby, and this was similarly driven by the site’s planned redevelopment.

While the flagship stores in downtown Toronto and downtown Montreal will be retained, at least for now, the downtown Vancouver location was not as fortunate.

Hudson’s Bay flagship store in downtown Vancouver. (Kenneth Chan)

The model HBC-branded canoe being removed from the store on March 19, 2025; Hudson’s Bay flagship store in downtown Vancouver. (Kenneth Chan)

A vicious cycle

Everywhere one looks, there are signs of extreme deferred maintenance at the downtown Vancouver flagship store.

Most notably, all of the escalators and elevators are now completely inoperable, likely due to a combination of mechanical failures and missed mandatory safety inspections by private contractors. The issue is so severe that even the escalators have been physically blocked off with tape, signs, garbage cans, and planters to prevent their use as makeshift staircases.

There were previously some signs of progress and reinvestment. About four years ago, major upgrades were finally completed on the store’s four sluggish old elevators, complete with an overhaul of the cabins for a more modern appearance.

But over the past two years, the elevators and escalators progressively became inoperable. Recent court filings reveal that during this period between 2023 and 2024, Hudson’s Bay’s financial troubles worsened, prompting the company to cut operating costs.

Reinvestment in the downtown Vancouver store building was likely more limited after 2022, when Hudson’s Bay announced ambitious plans for a high-density, mixed-use redevelopment. But the company likely did not intend for conditions to deteriorate this severely.

In January 2024, the store faced a multi-day closure due to a severe leak of a sewage-like substance across multiple levels. The incident caused very significant damage to the newly opened Levi’s store in the upper basement level, which was the only area of the store that did not reopen after the multi-day closure. It remained sealed off and closed for many months to enable the completion of a major fix. Recent court filings show Levi’s Canada is among Hudson’s Bay’s largest unsecured retail brand creditors, with the company owing it over $4.3 million.

Condition of Hudson’s Bay flagship store in downtown Vancouver, as of March 10, 2025. (Kenneth Chan)

Moreover, Hudson’s Bay owes numerous elevator and escalator contractors millions of dollars, according to the filings. This includes $3.55 million owed to Schindler Elevator Corp., which is one of the world’s leading manufacturers and maintenance service providers of elevators and escalators.

And at least over the past year, the direct entrance into the store’s upper basement level from SkyTrain Granville Station has been closed, which not only limited potential customer traffic into the store but the more direct access route between Granville Station, CF Pacific Centre mall, and SkyTrain Vancouver City Centre Station. This also followed the 2022 closure of the store’s lower basement level — a level previously known for luggage, toys, and another entrance to Granville Station, fronting the long corridor to reach the ticketing hall.

What has become abundantly clear in recent weeks is the company has been triaging its expenses.

It was just days away from missing payroll earlier this month, and the court-approved liquidation plan today notes property insurance payments will be some of the company’s top priorities. It owes about $5.4 million, which is due in full the week of March 24, 2025. A financing agreement will enable Hudson’s Bay to provide an initial payment of $1.6 million, followed by monthly instalments of $431,000.

The downtown Vancouver store’s decline reflects a vicious cycle common in struggling retailers — a classic case of death by a thousand cuts. As maintenance and reinvestment were deferred, the shopping experience deteriorated, further driving away customers and reducing revenue. This, in turn, led to even fewer resources available for upkeep, accelerating the downward spiral. Structural issues, store closures, and unpaid debts compounded over time, making recovery increasingly difficult.

With all escalators and elevators inoperable and physically blocked off, the only way to traverse the eight levels of the downtown Vancouver store — including the upper basement level and the rooftop staff-only level — is by using the emergency stairwell next to the bank of elevators.

This stairwell will be the only access point for the expected crowds of shoppers flocking to the store for the liquidation sale in the coming weeks. Already, in recent weeks, it has been very busy amid news of the company’s demise.

The emergency stairwell; Hudson’s Bay flagship store in downtown Vancouver. (Kenneth Chan)

The echo of pounding footsteps in the emergency staircase at Hudson’s Bay’s downtown Vancouver flagship store.

With all escalators and elevators blocked off, this is the only way to access all 8 levels, including the basement and rooftop employee level.https://t.co/9Tycn26jJF pic.twitter.com/YV8BAcMIUc

— Kenneth Chan (@iamkennethchan) March 11, 2025

Following the liquidation period and the store’s closure by June 2025, downtown Vancouver will be left with 650,000 sq. ft. of vacant space — its future uncertain, its presence unmistakable.

This only adds to the void left by Nordstrom’s departure from CF Pacific Centre in June 2023, which saw 230,000 sq. ft. of retail space across three stories sit empty. Mix this all in with the reduced pedestrian traffic in downtown Vancouver due to sustained semi-remote office work practices.

However, the former Nordstrom space is likely to remain vacant for a much shorter period, as it is a younger building that underwent a major renovation just a decade ago and remains in excellent condition — unlike Hudson’s Bay. The municipal government recently approved Cadillac Fairview’s application to demolish the interior down to its base condition in preparation for future tenants. Speculation continues that multiple large and prominent retailers will move in to fill the void left by Nordstrom, similar to the plans for the former Nordstrom space at CF Toronto Eaton Centre.

Will this heritage building be sold to a new owner?

The downtown Vancouver Hudson’s Bay heritage building — visually distinct with its iconic cream terra cotta facade and Corithian columns — was constructed in four different sections a century ago, with most of the building in its existing form completed in 1927. The first iteration of the downtown Vancouver store opened in Gastown in 1887 before relocating to a previous building on its current site in 1893.

The redevelopment proposal revealed by Hudson’s Bay in 2022 called for the full retention and restoration of this heritage facade, but the internal structure would be completely demolished for a new-build interior and a cube-like, 12-storey vertical expansion.

This high-density, mixed-use project would have introduced about one million sq. ft. of office space within the top two floors of the heritage base podium and the 12-storey addition, and about 400,000 sq. ft. of retail/restaurant space within the first four floors and upper basement level, including a new concept downsized flagship Hudson’s Bay with optimal access and oriented around an indoor atrium. There would also be a new entrance into Granville Station and a secured bike parkade in the lower basement level.

With the recent changes to the office market, the proposal was expected to see revisions that downsize the office space component for the introduction of a major rental housing component on the Seymour Street side of the building.

674 Granville Street Vancouver hudsons bay redevelopment

Artistic rendering of the redevelopment of Hudson’s Bay’s Vancouver flagship store at 674 Granville Street. (Perkins & Will/Streetworks Development/Hudson’s Bay Company)

Daily Hive photo of the 2022 concept for the Hudson’s Bay Vancouver redevelopment. (Kenneth Chan/Daily Hive | Perkins & Will/Streetworks Development/Hudson’s Bay Company)

hudsons bay vancouver redevelopment concept 2022

Daily Hive photo of the 2022 concept for the Hudson’s Bay Vancouver redevelopment. (Kenneth Chan/Daily Hive | Perkins & Will/Streetworks Development/Hudson’s Bay Company)

Artistic rendering of the redevelopment of Hudson’s Bay’s Vancouver flagship store at 674 Granville Street. (Perkins & Will/Streetworks Development/Hudson’s Bay Company)

However, Hudson’s Bay has yet to submit a formal rezoning application to pursue this project, and it is unclear if it has the capacity to proceed with such a redevelopment moving forward. When the project was first announced in 2022, they had an ambitious timeline to potentially close the store in 2023, begin construction in early 2024, and reach completion in 2027/2028.

Court filings also show it owes architectural firm Perkins&Will — the same firm that designed the redevelopment concept — over $105,000.

Prior to creating a new real estate development division to optimize its properties, Hudson’s Bay came close to selling the downtown Vancouver flagship store in 2018, when it reached a conditional agreement to sell the building for $675 million. But it was not finalized.

As part of the court-approved restructuring, Hudson’s Bay will collaborate with commercial real estate firm Oberfeld Snowcap to market and sell its leases and properties, generating additional interim operating revenue. Regardless of whether redevelopment is led by Hudson’s Bay or a new owner, the transformation of the downtown Vancouver flagship store is inevitable.

The downtown Vancouver store is one of about a dozen locations that are under a 2015-formed joint venture partnership, where Hudson’s Bay owns 78 per cent of the partnership and RioCan Real Estate Investment Trust owns 22 per cent.

Among all locations, the downtown Vancouver flagship store carries the largest mortgage, totalling $202 million, set to mature at the end of April 2025. This joint venture holds this property as a freehold asset. In its court filings this month in response to Hudson’s Bay’s proceedings, RioCan opposed various proposed protections for the retailer, and emphasized the ability to optimize the leasing and redevelopment opportunities of the partnership to reduce the exposure of their stakeholders.

According to BC Assessment, as of July 2024, 674 Granville Street is assessed for $195 million, including $163 million for the 76,726 sq. ft. plot of land and $32 million for the structure. This is down from $198 million in July 2023 and the peak value of $252 million in July 2018.

Hudson’s Bay flagship store in downtown Vancouver. (Kenneth Chan)

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