The Hudson’s Bay Company, one of Canada’s oldest businesses, is facing liquidation after more than 350 years of operation. The company filed for liquidation in Ontario courts early Monday, seeking to close all its stores beginning Tuesday. It cited lower consumer spending, post-pandemic shifts, and nearly $1 billion in debt as key reasons for the sell-off.
Ontario Superior Court Judge Peter Osborne has expressed concern, urging caution about selling “the jewels in the crown”—prime retail locations and intellectual property containing historical artifacts and documents dating back to the 16th century. The judge voiced apprehension that the liquidation process could seal the retailer’s fate.
The company’s potential closure marks the end of a historic chapter in Canadian business. Founded in 1670 as a fur trading company, it later became a staple department store throughout the 20th century, where it was arguably the centrepiece of Canadian retail. Its large, multi-floor stores not only offered a wide variety of products but also served as social hubs, featuring restaurants and in-store events.
By the 1960s and 1970s, the retail landscape began to shift. To stay relevant, Hudson’s Bay began purchasing retail spaces in shopping complexes. But despite predictions of the death of malls over the past 30 years, that forecast now may be coming true. With Hudson’s Bay stores occupying the largest retail spaces at White Oaks and Masonville Place in London, these once-bustling locations are now seeing fewer customers, reflecting the broader decline in foot traffic to traditional shopping centres.
Instagram user @maxmuscu commented on the news of HBC’s filing for liquidation. “Where do I go now to enter the mall and walk straight through it?” they said.
Jamie Hyodo, an assistant professor of consumer behaviour at Western University, offers insight into how Hudson’s Bay’s debt of nearly $1 billion didn’t accumulate overnight.
“The department store was the beacon of retail activity in the early to mid-1900s,” says Hyodo. “But there were warning signs as early as the late 1960s and 1970s when discount retailers started entering the scene.”
Hyodo said that the rise of outlet retailers like Walmart and Costco, which positioned themselves as low-cost alternatives by capitalizing on urban expansion and increased vehicle access, played a significant role in reshaping the retail landscape. This shift toward more affordable options has put pressure on traditional department stores.
Hyodo also cited the sheer size of Hudson’s Bay, combined with a lack of specialization in any one product category, as other factors for why the company is now seeking liquidation.
“The Bay lost flexibility and the ability to pivot in any sort of aggressive manner without incurring short-term losses,” he said. “And for whatever reason internally, they chose not to do a dramatic repositioning.”
When asked whether the potential liquidation could lead to profitable opportunities for financiers or Canadian-owned companies purchasing Hudson’s Bay’s property, intellectual property, and trademark, Hyodo offered some silver lining.
“I think that the intellectual property and the brand of the Bay is something that could have a lot of value in the right hands… There is an opportunity for a future incarnation of the Bay where it’s not anchored by large and expensive retail properties,” said Hyodo. “I’m not sure what that could look like, but I do think the brand itself is one that Canadians would still support if it offered something they valued.”
Although Judge Peter Osborne’s decision and the future of Hudson’s Bay are uncertain, there is no doubt that those who remember the store’s significance and heyday may be losing more than just a department store—they could lose cherished memories and a brick-and-mortar time capsule of proud Canadian history.
2025-03-18