Hudson’s Bay, Canada’s oldest retail chain, filed for creditor protection in a move that puts its 80 department store outlets the company operates at risk of being considered for closing.
The company stated in a statement issued Friday night that it has “commenced proceedings under the Companies’ Creditors Arrangement Act pursuant to an initial order for creditor protection from the Ontario Superior Court of Justice” and cited financial issues stemming from tariffs from the United States, new consumer buying habits after the pandemic and rising costs.
The move signals the struggling fortunes of an institution that has long been part of the national economy and culture. The chain founded 355 years ago in the United Kingdom went on to open its first store in Canada, in Winnipeg, in 1881.
Any closing of some or all of the stores would have a major effect on the Canadian retail real estate landscape.
The chain operates 32 stores in Ontario, 16 in British Columbia, 13 in Quebec, 13 in Alberta and two each in Manitoba, Saskatchewan and Nova Scotia, according to its website.
“Hudson’s Bay has been a vital retailer to Canadians for generations, and this decision was made with the best interests of our customers, associates and partners in mind,” said Liz Rodbell, president and chief executive of Hudson’s Bay, in the statement.
'Re-establish our foothold'
She added that the chain, “remains deeply connected to Canada and is focused on the future. Our goal is to re-establish our foothold and ensure the company’s long-term place in the evolving Canadian retail market. As we go through this process, we will continue to show up for our customers and communities, as we always have.”
Hudson's Bay outlets are important tenants in dozens of shopping hubs across Canada, including the Erin Mills Town Centre in Mississauga, the London White Oaks Mall, in London, the Mapleview Centre in Burlington, the Oshawa Centre, in Oshawa.
In Western Canada Hudson's Bay occupies such malls as Calgary’s Sunridge Mall, the Aberdeen Mall in Kamloops British Columbia and the Prince George Parkwood Place, in Prince George, British Columbia.
In Quebec the chain operates department stores in such retail hubs as the Galeries D’Anjou in Montreal, The Carrefour De L’Estrie in Sherbrooke, and the Champlain Mall in Brossard, Quebec, among dozens of others across the country.
In July 2024, Hudson’s Bay agreed to purchase Neiman Marcus Group for US$2.65 billion and launched Saks Global that combined the assets of such enterprises as Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman.
Hudson’s Bay split with Saks Fifth Avenue in December 2024.