Hudson’s Bay Bankruptcy: Can the Retail Icon Avoid Liquidation?

Hudson’s Bay, one of North America’s oldest retailers, is fighting to stay afloat—here’s what’s happening with their bankruptcy and what it means for the future.

HBC is North America's longest continuously operating company and currently holds 104 stores and employs more than 9,300 people. (Shutterstock)

It’s been a rough ride for Hudson’s Bay, and things just got even more intense. The company behind the historic Canadian retailer is fighting to avoid a full shutdown after filing for bankruptcy last week.

According to BOF, on Monday, Hudson’s Bay Co. (HBC) pleaded with a judge to let it sell off inventory over the next three months to raise cash. If that doesn’t happen, the company may have no choice but to shut down completely. It’s a make-or-break moment for a brand that’s been around since 1670—yes, before Canada was even a country!

HBC is drowning in debt, owing about C$1.1 billion ($770 million), and their attempts to solve the financial crisis haven’t worked. They currently operate 104 stores and employ over 9,300 people, so the stakes are high.

The court hasn’t made a decision yet, but landlords like RioCan, who are owed millions in rent, aren’t happy. They’re pushing back against the company’s request to pause payments, calling it unfair. Meanwhile, HBC is hoping to keep at least 25 stores open and save as many jobs as possible.

So, how did we get here? Like many traditional retailers, Hudson’s Bay has struggled to compete with online shopping. The company went private in 2020, but the pandemic only made things worse. Foot traffic never fully recovered, and now they’re out of options.

Is this the end of Hudson’s Bay as we know it? Or can they find a last-minute lifeline? Stay tuned—this Hudson’s Bay Bankruptcy drama is far from over.