What: Hudson's Bay's revised liquidation plan excludes six strategic locations while proceeding with store closures across Canada, marking a critical phase in the retailer's restructuring efforts.

Why it is important: The selective preservation of prime locations while liquidating the broader network demonstrates the complex interplay between real estate value and retail operations in modern department store restructuring.

Hudson's Bay Company's court-approved liquidation plan marks a significant turning point in Canadian retail history, with a strategic approach to preserving select locations while initiating broader store closures. The company's decision to exclude six key stores, including prominent locations in Toronto and Montreal, stems from stronger-than-expected recent sales performance. This revised strategy provides additional time for potential restructuring negotiations with landlords and stakeholders. Under the leadership of CEO Liz Rodbell, the company has acknowledged overwhelming public support while implementing practical measures for an orderly wind-down. The plan includes specific provisions for customer accommodations, with gift cards being accepted until April 6, while maintaining normal operations for their online platform. The court's approval also encompasses broader financial measures, including repayment of debtor-in-possession financing and the initiation of a sale and investment solicitation process, alongside a lease monetisation strategy designed to maximize stakeholder value.

IADS Notes: The current liquidation strategy emerges from a complex history of real estate-focused management. As noted in March 2025, Richard Baker's leadership prioritised property monetisation over retail operations, leading to a systematic weakening of the company's retail foundation. The development impacts Canada's retail landscape significantly, affecting over 9,000 employees across 80 locations. While competitor Holt Renfrew has successfully maintained its luxury positioning while broadening its appeal, Hudson's Bay's strategic retention of key urban locations suggests a final attempt to preserve value in prime real estate assets while exploring restructuring options.

Hudson’s Bay receives court approval for revised liquidation plan, excludes six locations