What: Hudson's Bay faces complete liquidation after failing to secure adequate financing for restructuring.

Why it is important: The contrast between Hudson's Bay's fate and Saks' successful merger strategy demonstrates how different approaches to retail transformation can lead to drastically different outcomes.

Hudson's Bay Company's announcement of impending liquidation marks a dramatic turning point for North America's oldest corporation. Despite exhaustive efforts to secure financing, the company has been forced to initiate store-by-store liquidation proceedings across its 80 locations throughout Canada. The closure will affect 9,364 employees and includes the company's e-commerce operations at TheBay.com, along with its licensed Saks Fifth Avenue and Saks Off 5th stores in Canada. While holding out hope for a last-minute rescue, particularly from landlord partners, the company requires immediate and substantial cooperation from key stakeholders to avoid complete shutdown. CEO Liz Rodbell emphasised the company's deep historic significance and community impact, yet acknowledged the overwhelming challenges faced in recent years. The situation stems from multiple factors, including unsuccessful digital investments, post-pandemic recovery struggles, and complications from discretionary spending weakness. Previous attempts at restructuring, including separating and later reunifying e-commerce and physical operations, failed to generate sufficient momentum for recovery.

IADS Notes: The collapse of Hudson's Bay in March 2025 represents a stark contrast to other retail transformation strategies. While the company struggled with limited interim financing of CAD $16 million, competitors like Saks pursued successful consolidation through a $2.65 billion merger with Neiman Marcus in December 2024. Hudson's Bay's May 2024 decision to reverse its separation of e-commerce and physical operations proved insufficient to overcome broader market challenges, highlighting the critical importance of successful digital integration in modern retail.

Hudson’s Bay forced to liquidate unless last-minute financing can be found