Iconic Canadian Retailer Faces Closure, 9,364 Jobs at Risk as Company Struggles to Secure Financing
Hudson’s Bay, Canada’s oldest company, has announced plans for an immediate liquidation of its entire business, marking the end of an era for the 354-year-old retail giant. Despite last-minute efforts to secure additional capital, the company has been unable to obtain the necessary funding to continue operations.
The liquidation process is set to begin next week and is expected to conclude by June 15, 2025, pending a court hearing scheduled for Monday. If finalized, the closure will result in the loss of 9,364 jobs across Hudson’s Bay locations in Canada, including its Saks Fifth Avenue and Saks Off 5th stores.
In a statement released late Friday, Hudson’s Bay President and CEO Liz Rodbell expressed disappointment over the situation but remains hopeful that a resolution may still be found.
“Our team has worked tirelessly to explore every possible avenue to keep Hudson’s Bay afloat,” Rodbell said. “The overwhelming support from our customers and employees underscores the importance of our legacy, and we are doing everything in our power to find a solution with key stakeholders, particularly our landlords.”
Despite these efforts, the company has confirmed that a store-by-store liquidation is necessary due to its inability to secure sufficient debtor-in-possession financing—a type of emergency funding sought by companies undergoing restructuring.
Founded in 1670, Hudson’s Bay has been a cornerstone of Canada’s retail landscape for centuries. However, in recent years, it has struggled to adapt to evolving consumer trends, increased competition, and financial instability.
The company’s March 7 creditor protection filing revealed staggering debts exceeding $950 million, owed to landlords, suppliers, and major fashion brands including Ralph Lauren, Chanel, Columbia Sportswear, Diesel, and Estée Lauder.
Court filings indicate that Hudson’s Bay has been unable to meet its financial obligations for months, leading to unpaid rent, service provider debts, and vendor payment deferrals. The crisis even resulted in the company being locked out of its Sydney, N.S. store by a landlord and bailiffs attempting to seize merchandise from its Sherway Gardens location in Toronto.
The closure of Hudson’s Bay will leave large retail spaces vacant in shopping malls and prime locations across Canada. The company operates 80 stores nationwide, with Ontario housing 32 locations and the majority of its workforce.
If the shutdown proceeds, it will not only displace thousands of retail employees but also create significant challenges for mall operators and landlords searching for tenants capable of filling the massive spaces once occupied by Hudson’s Bay.
Hudson’s Bay’s financial struggles have been years in the making. After being acquired by American businessman Richard Baker in 2008, the company was taken public in 2012, then reverted to private ownership in March 2020—just weeks before the COVID-19 pandemic disrupted global retail markets.
Despite efforts to modernize, including spinning off its U.S. Saks operations and acquiring luxury retailers Neiman Marcus and Bergdorf Goodman, the company was unable to turn the tide.
As Hudson’s Bay faces its most critical week in history, its fate rests on whether a last-minute deal can be reached with landlords and investors. Otherwise, Canada is set to say goodbye to one of its most historic and beloved retail institutions.