An Ontario court in Canada has authorized Hudson’s Bay, the nation’s oldest retail establishment, to begin liquidating the majority of its stores from Monday. The decision was handed down by Judge Peter Osborne of the Ontario Superior Court and applies to most of the company’s 80 Hudson’s Bay stores, in addition to three Saks Fifth Avenue locations and 13 Saks Off 5th outlets across Canada. Judge Osborne declared that there were no other viable options available for the historic company, which began operations in 1670.
Originally founded as a fur trading business, Hudson’s Bay has become a mainstay in Canadian culture, renowned for its iconic wool blankets that have helped residents endure the harsh Canadian winters. Additionally, the brand is woven into the national fabric through its historical association with the industrious “voyageurs” who explored Canada while engaging in trade with Indigenous populations.
Among the stores spared from the liquidation process are the flagship outlet located on Yonge Street in Toronto, as well as shops in Yorkdale Mall and Hillcrest Mall in Richmond Hill, Ontario. The remaining protected locations are based in Montreal, Carrefour Laval Mall, and Point-Claire, Quebec. While the liquidation sales will last until June 15, the company has yet to disclose the discount rates that will be offered during this period. Hudson’s Bay plans to vacate the stores being liquidated by June 30.
This action could potentially preserve several of the 9,364 jobs that were at risk of being lost if the company proceeded with its initial plan to liquidate all its outlets. Recent sales have exceeded expectations, enabling the company to retain a fraction of its locations. Legal representative Ashley Taylor indicated that if a viable restructuring plan is identified swiftly, further stores might be saved from liquidation. However, should such a solution fail to emerge promptly, the six remaining stores might be included in the liquidation process.
The court’s decision offers a faint hope to Hudson’s Bay, which has been embroiled in financial difficulties leading it to file for creditor protection on March 7. The company has been facing several financial barriers, including declining consumer expenditure, trade tensions between Canada and the United States, and a downward trend in downtown shopping activities post-pandemic. These issues resulted in deferred payments to landlords and suppliers, eventually leading the company to seek financing and pushing it toward liquidation.
Recent news of the impending liquidation prompted a surge in customer interest, driving increased sales of Hudson’s Bay’s renowned striped products and other merchandise. Taylor affirmed the company remains committed to exploring a “long-term solution” to its financial challenges, emphasizing the urgency of finding such a remedy given the tight timeframe. Meanwhile, the company intends to pursue a sales process for its assets, such as leases, while Canadians can expect to find bargains at stores slated for closure. All transactions in the liquidating stores will be final, Hudson’s Bay confirms.