What: Hudson's Bay Company announces liquidation of its final seven stores in Canada, including six own-brand locations and one Saks Fifth Avenue store, marking the end of its Canadian retail operations.

Why it is important: This final liquidation represents a significant shift in Canadian retail, demonstrating how private equity ownership focused on real estate assets can lead to the dismantling of historic retail institutions.

Hudson's Bay Company's decision to liquidate its remaining seven stores marks the culmination of a prolonged struggle for North America's oldest retailer. The announcement follows the company's March filing under the Companies' Creditors Arrangement Act, where initial hopes for a viable restructuring plan proved unsuccessful. The liquidation process, beginning April 25, will affect six Hudson's Bay locations and one Saks Fifth Avenue store, adding to the already ongoing sales at 73 Hudson's Bay sites, 13 Saks Off 5th locations, and two Saks Fifth Avenue stores. While the Sale of Investor Solicitation Process remains active until April 30, allowing potential bidders to withdraw stores from liquidation, the company has set firm closure dates, with Canadian operations ceasing by June 15 and nine Saks Off 5th stores closing April 27. This development represents the final chapter for a company that secured only limited debtor-in-possession financing, ultimately requiring a complete liquidation despite efforts to preserve jobs and maintain tenancy in retail locations.

IADS Notes: The liquidation of Hudson's Bay's remaining seven stores marks the final chapter in a complex retail transformation story. In March 2025, the company initially secured CAD USD 16 million in interim financing and attempted to preserve six strategic locations while initiating broader closures. However, the situation deteriorated rapidly, reflecting the consequences of private equity ownership that prioritised real estate assets over retail operations, accumulating nearly CAD USD 1 billion in debt. This approach mirrors a broader pattern in department store restructuring, where real estate monetisation often takes precedence over retail viability. The contrast between Hudson's Bay's Canadian operations and its US luxury division is particularly striking - while the Canadian parent company liquidates its final stores, its Saks Global division completed a USD 2.65 billion acquisition of Neiman Marcus in December 2024, demonstrating how different approaches to retail transformation can lead to drastically different outcomes in today's challenging retail landscape.

Hudson’s Bay to liquidate remaining seven stores