Hudson’s Bay could begin liquidating all of its Canadian stores as early as today, Tuesday March 18, as it awaits a court order from a hearing in Ontario.
If the full liquidation plan is approved, 80 stores across the country will be affected, as well as three Saks Fifth Avenue locations, and 13 Saks Off 5th stores in Canada. The proposed plan also includes a provision allowing the company to exclude certain stores from liquidation if it secures sufficient financing within the expected 10-12 week inventory clearance period.
The future of Canada’s oldest company looks grim, having faced financial woes in recent years leading up to their filing for creditor protection back on March 7, 2025.
Lawyers representing Hudson’s Bay credit the struggles to decline in consumer spending, trade tensions between Canada and the U.S., and reduced downtown store traffic following the pandemic.
As a result, payments to landlords, service providers, and vendors have been deferred, and was even close to missing payroll obligations. Its location in Sydney, Nova Scotia was even locked out by its landlord.
Various restructuring attempts have been unsuccessful, including a plan to liquidate half of its stores and sell off prime retail leases under debtor-in-possession financing. That plan fell through just hours before the March 7 court hearing, leading The Bay to scramble to secure alternative funding, all of which have been insufficient.
Now, liquidation is the next option, which puts over 9,000 jobs at risk. Ontario would be the most impacted, with 32 Hudson’s Bay locations and over half its workforce based in the province.
For retail customers, they have already paused their loyalty program, affecting over 8.2 million customers holding roughly $58.5 million in unused points. Gift cards will also stop being accepting at Hudson’s Bay stores after April 6.
If the court approves the liquidation sale, Hudson’s Bay can begin selling inventory, furniture and equipment from all 96 stores in Canada to help pay back creditors. The sale would need to be completed by June 15.