What: Canada's Hudson's Bay enters creditor protection proceedings after failing to recover from pandemic impacts and digital investment setbacks.

Why it is important: This development signals a critical moment in Canadian retail, highlighting how different post-pandemic recovery patterns and trade barriers can impact national retail landscapes.

Hudson's Bay Company has initiated restructuring proceedings under the Companies' Creditors Arrangement Act, seeking protection from creditors through the Ontario Superior Court of Justice. The company has secured interim financing of CAD 16 million from Restore Capital, with plans to present a restructuring strategy within ten days. The retailer's challenges stem from multiple factors, including unsuccessful digital investments, post-pandemic shifts in consumer behaviour, and ongoing trade tensions with the United States. Despite previous attempts at transformation, including separating and later reunifying its e-commerce and physical operations, the company has struggled to maintain profitability. The restructuring affects 80 stores across Canada, though its licensed Saks Fifth Avenue and Saks Off 5th locations will continue operating. CEO Liz Rodbell emphasises this move as necessary for maintaining Hudson's Bay's position in Canada's retail landscape, despite sector-wide challenges that have forced other retailers to exit the market.

IADS Notes: Hudson's Bay's bankruptcy filing in March 2025 reflects broader transformations in North American retail. The announcement follows December 2024's formation of Saks Global through a USD 2.7 billion merger between Saks and Neiman Marcus, highlighting the increasing pressure on traditional department stores to consolidate or transform. The company's struggles with digital investments mirror a sector-wide challenge, as evidenced by May 2024's decision to reverse its e-commerce separation strategy, demonstrating how significant technology investments haven't yielded expected returns in the Canadian market. The situation has been exacerbated by trade tensions between the US and Canada, with new tariffs creating market uncertainty and limiting access to capital.

Hudson’s Bay in Canada files for bankruptcy protection