Hudson's Bay files for bankruptcy, shuts down operations

Fashion Network

21 hours ago

"After 355 years, it is time to say goodbye." With this message, Canadian department store chain Hudson's Bay is closing its doors for good. The company has filed for bankruptcy and is liquidating its assets, resulting in the loss of more than 9,000 jobs. It marks the end of an era for a historic retail institution: Hudson's Bay opened North America's first department store and was one of the continent's oldest continuously operating companies. Here is a look back at the rise and fall of this retail icon.
Hudson's Bay's origins trace back to 1670, when two French fur traders— known as coureurs des bois— founded the company with the backing of England's King Charles II. Pierre- Esprit Radisson and Médard Chouart des Groseilliers established several trading posts to collect and ship animal pelts, mainly beaver. According to Quebec newspaper Le Devoir, these operations expanded with little "consideration for Indigenous populations."
The company's influence, driven by its exploitation of local land and maritime resources, soon extended from Canada's far north to as far south as San Francisco, playing a key role in shaping the economy of the so-called "New World."
As the Industrial Revolution and the decline of the fur trade reshaped the market, Hudson's Bay's trading posts gradually evolved into retail stores. From the 1880s onward, the company built a nationwide department store network. Over the decades, it acquired several Canadian chains, including Simpsons, Woodward's and Zellers, while its signature multi-colored stripes became an enduring emblem.
The company briefly ventured into Europe, acquiring Germany's Galeria Kaufhof in 2015 and taking over the Netherlands' V&D retail network in 2017. However, facing financial losses, Hudson's Bay divested its European operations by 2019.
Ninety-six stores affected
In Canada, Hudson's Bay's decline began over the past decade. The company operated 80 Hudson's Bay stores positioned in the upscale segment, along with three Saks Fifth Avenue stores and 13 Saks OFF 5TH outlets. Business further deteriorated after the pandemic, with the company citing the fast-changing retail landscape and elevated U.S. tariffs as key challenges.
Owned since 2008 by U.S.-based NRDC Equity Partners, the company sought creditor protection in April 2025 under Canada's Companies' Creditors Arrangement Act (CCAA), citing difficulties meeting its financial obligations. Headquartered in Toronto, Ontario, the company failed to secure funding for a potential restructuring and ultimately moved toward full liquidation.
In recent weeks, stores sold off remaining inventory ahead of a June 1 closing date. The closures led to 8,300 job losses across retail locations, with nearly 1,000 additional layoffs expected in offices and logistics centers by mid-June. Local media reported widespread emotion among longtime employees— some with three decades of service— and among customers who associate Hudson's Bay with family memories.
However, the brand name, emblems and logos will live on. In mid-May, Canadian retail group Canadian Tire acquired the rights for 30 million Canadian dollars (19 million euros).
A 'strategic and patriotic' choice
"It is difficult to witness the final days of another iconic Canadian retailer. While the circumstances are unfortunate, we are proud to step in for customers. This decision is both strategic and patriotic," said Canadian Tire president Greg Hicks. The company plans to integrate Hudson's Bay's signature stripes into its private label products and has reportedly submitted bids for several store leases.
Up to 28 store leases could also be transferred to Chinese billionaire Ruby Liu, a shopping center owner planning to launch a new department store chain in Canada.