Hudson’s Bay Canada Liquidation: Introduction
Last week I wrote Brandon’s Blog titled THE HUDSON’S BAY COMPANY EFFECT: OUR COMPREHENSIVE GUIDE ON THE DOWNFALL OF CANADA’S OLDEST RETAILER.
That blog post provided the complete history of the Hudson’s Bay Canada department store chain, explaining how it reached the point where it had to file for creditor protection under Canada’s Companies’ Creditors Arrangement Act and offering tips that all entrepreneurs and companies can learn from the company’s financial problems. This Brandon’s Blog focuses on the Court approval granted on Friday, March 21, 2025, for Hudson’s Bay Canada’s liquidation plan.
Standing in the grand halls of Hudson’s Bay in downtown Toronto feels like stepping into a piece of Canadian retail history. The store’s distinctive red, green, yellow, and blue striped blankets and classic department store layout have been familiar sights for generations of shoppers. But March 21, 2025, marks a turning point for this beloved Canadian institution.
Court Approves Hudson’s Bay Canada Liquidation Plan
The Ontario Superior Court of Justice has just granted Hudson’s Bay Canada permission to liquidate most of its stores across the country. The Honourable Justice Peter J. Osborne made the difficult Ontario court ruling decision, stating:
There’s no alternative but to approve the liquidation effective immediately to maximize the chances of success.
For shoppers who grew up visiting “The Bay,” as many Canadians affectionately call it, this news hits hard. The liquidation sales will begin next week on March 27 and are expected to continue until June 15.
The liquidation plan approved last Friday calls for the closure of:
- 80 Bay stores
- Three Saks Fifth Avenue stores
- 13 Saks Off 5th locations
Will Any Hudson’s Bay Canada Stores Remain?
Originally, Hudson’s Bay Canada’s liquidation plan was to close all 80 of its department stores, plus three Saks Fifth Avenue locations and 13 Saks Off 5th stores. However, in a last-minute strategy shift, the company now hopes to keep six key locations open:
- The flagship store at Yonge and Queen Streets in Toronto
- Yorkdale Mall in Toronto
- Hillcrest Mall in Richmond Hill
- Three Quebec stores: downtown Montreal, Carrefour L
Whether these six stores can survive depends on quick negotiations with landlords, especially with their joint venture real estate partner and continued sales improvements.
Hudson’s Bay Canada: A Surprising Sales Surge
In an unexpected twist, Hudson’s Bay lawyer Ashley Taylor reported a recent surge in sales. This boost has helped the company reduce its financing needs from $23 million down to $16 million.
This sales increase shows that many Canadians still have a soft spot for Hudson’s Bay. Perhaps news of the potential closures has prompted loyal customers to visit one last time or show their support through purchases.
Hudson’s Bay Canada: What This Means for Employees
Behind the business decisions and court rulings are real people whose lives will change dramatically. Over 9,000 Hudson’s Bay employees now face an uncertain future. Andrew Hatnay, the lawyer representing these workers, has expressed serious concerns about mass terminations. He stated:
Mass terminations could drastically alter lives of over 9,000 employees.
This statement reflects the gravity of the situation. Employees are not just numbers; they are individuals with families, responsibilities, and dreams.
As HBC moves forward with its liquidation process, the potential for mass layoffs is a pressing concern. The emotional impact of losing a job can be overwhelming. It’s not just about the paycheck; it’s about stability, identity, and prospects. Many employees may face uncertainty regarding their next steps, which can lead to anxiety and stress.
Severance claims could exceed $100 million, and employees are worried about their pension plans. For many workers who have spent decades with the company, this situation is more than just headlines—it’s their livelihood at stake.
Hudson’s Bay Canada Liquidation: The Impact on Canadian Communities
When a 355-year-old department store ssretail chain like Hudson’s Bay Canada closes stores, it affects entire communities. These department stores often anchor shopping malls and downtown districts. Their absence leaves a void that goes beyond just shopping—these stores host community events and holiday celebrations, and create gathering spaces.
Local businesses that depend on the downtown store traffic Hudson’s Bay generates will also feel the impact. The closures could create a domino effect throughout retail districts across Canada.
Hudson’s Bay Canada Highlights The Changing Face of Retail
Hudson’s Bay Company, founded in 1670, is North America’s oldest company. It survived wars, depressions, and countless economic shifts. However, the rise of online shopping, changing consumer habits, and the aftermath of the pandemic have created challenges that even this historic retailer couldn’t overcome without dramatic changes.
The company’s struggles mirror those facing department stores worldwide. Shoppers increasingly prefer either discount retailers or luxury boutiques, leaving traditional department stores caught in the middle. In present-day Canada, it does not look like a national department store chain can survive.
Frequently Asked Questions: Hudson’s Bay Canada Liquidation
Why is Hudson’s Bay Canada closing so many stores?
Hudson’s Bay has struggled in recent years as shopping habits changed. More people shop online now, and many customers prefer either discount stores or high-end luxury shops instead of traditional department stores. The pandemic also hurt sales badly. These problems forced the company to seek protection from its creditors under Canadian law. When no better solution could be found, the court approved a plan to sell off inventory and close most locations.
How many Hudson’s Bay stores will be closing?
The liquidation plan affects most of Hudson’s Bay’s retail network. This includes:
- 80 regular Hudson’s Bay department stores
- 3 Saks Fifth Avenue locations
- 13 Saks Off 5th stores
The going-out-of-business sales start March 27, 2025, and will likely continue until June 15, 2025.
Will any Bay stores stay open?
Hudson’s Bay hopes to keep six stores running:
- The main flagship store at Yonge and Queen Streets in Toronto
- The store in Yorkdale Mall
- Hillcrest Mall location in Richmond Hill
- Three Quebec stores (downtown Montreal, Carrefour Laval, and Pointe-Claire)
Whether these stores survive depends on quick negotiations with landlords and whether sales continue to improve.
What happens to Hudson’s Bay employees?
This is a difficult time for over 9,000 people who work at Hudson’s Bay. Many face losing their jobs as stores close. The company might need to pay more than $100 million in severance to laid-off workers. Employees are also worried about their pension plans and whether these will remain secure. For people who have worked at The Bay for many years, this creates serious stress about their future.
How will communities be affected when Hudson’s Bay closes?
When a big store like Hudson’s Bay closes, the whole community feels it. These stores often anchor shopping malls and downtown areas, bringing customers who also shop at nearby businesses. Many small businesses depend on this foot traffic to survive.
Hudson’s Bay stores also host community events, holiday celebrations, and serve as meeting places. These community spaces will be lost when stores close, leaving a gap that’s about more than just shopping.
What does Hudson’s Bay’s situation tell us about retail today?
The struggles at Hudson’s Bay show how tough retail has become for traditional department stores. Even though Hudson’s Bay Company has been around since 1670 and survived countless challenges, today’s retail environment is especially difficult. Department stores are caught in the middle – they’re not as cheap as discount stores but don’t offer the special experience of luxury boutiques. Online shopping has made everything more competitive, forcing even historic retailers to adapt or face closure.
Should I use my Hudson’s Bay gift card soon?
Yes! If you have a Hudson’s Bay gift card, you should use it as soon as possible. During liquidation, there’s no guarantee how long gift cards will be accepted. The sooner you use it, the better chance you have of getting full value from your card.
Where can businesses facing similar problems get help?
Financial troubles can happen to any business, even one as established as Hudson’s Bay. Companies struggling with debt should talk to a licensed insolvency trustee who specializes in business restructuring. Getting professional advice early can sometimes help avoid more serious measures like liquidation. Look for advisors with experience in your industry who can offer specific guidance for your situation.
What Happens Next with the Hudson’s Bay Canada Liquidation?
Hudson’s Bay Canada must finalize negotiations with landlords quickly. If they can’t, even the six stores currently spared may face liquidation.
For shoppers, the next few months represent the last chance to visit many Hudson’s Bay locations before they close forever. While liquidation sales might offer bargains, they also mark the end of a retail era for many Canadians. I will repeat my warning of last week. If you hold a Hudson’s Bay gift card, use it immediately while they are still honouring them.
As this story continues to unfold, one thing is certain: the Canadian retail landscape will never be quite the same without the iconic Hudson’s Bay stores that have been fixtures in communities across the country for generations.
I hope you’ve found this Hudson’s Bay Canada Brandon’s Blog helpful. If you or someone you know is struggling with too much debt, remember that the financial restructuring process, while complex, offers viable solutions with the right guidance.
At the Ira Smith Team, we understand the financial and emotional components of debt struggles. We’ve seen how traditional approaches often fall short in today’s economic environment, so we focus on modern debt relief options that can help you avoid bankruptcy while still achieving financial freedom.
The stress of financial challenges can be overwhelming. We take the time to understand your unique situation and develop customized strategies that address both your financial needs and emotional well-being. There’s no “one-size-fits-all” approach here—your financial solution should be as unique as the challenges you’re facing.
If any of this sounds familiar and you’re serious about finding a solution, reach out to the Ira Smith Trustee & Receiver Inc. team today for a free consultation. We’re committed to helping you or your company get back on the road to healthy, stress-free operations and recover from financial difficulties. Starting Over, Starting Now.
The information provided in this blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc., and any contributors do not assume any liability for any loss or damage.