It was a scene both surreal and poignant this past weekend as thousands of shoppers flooded into Hudson’s Bay’s Queen Street flagship in downtown Toronto, lured by deep discounts amid the historic retailer’s liquidation sale. Starting Friday morning, April 25, clearance signs filled the massive store, spanning an entire city block, with eager bargain-hunters moving from floor to floor.

The heavy foot traffic reflected not just a rush for deals, but also a collective farewell to a brand that has been a part of Canada’s retail landscape for over 350 years. By Saturday afternoon, shelves that had been full just 48 hours prior were visibly bare, with shoppers combing through remaining stock on every level.

Retail Insider visited the store Thursday evening before liquidation officially began. At that time, the store’s stock appeared substantial. However, by Saturday, much of it had been sold, with areas of empty shelving and chaotic racks leaving a stark contrast to the grandeur once associated with the Queen Street location.

Shock and Nostalgia Among Shoppers

The emotional weight of the moment was not lost on customers. Retail Insider spoke with several shoppers who expressed shock and sadness at the store’s closure.

“I’m in a state of shock. I’ve been coming here for decades,” said one woman, who recalled shopping at the store when it was operated by Simpsons prior to Hudson’s Bay’s takeover in 1991. “It’s not just a store. It’s part of the city’s memory.”

Another customer admitted he hadn’t set foot inside a Hudson’s Bay store in years, but came specifically for the liquidation sales. “I’m here to find home goods, kid’s clothes — anything really,” he said. “It’s hard to believe this place is closing.”

Large, bold clearance signage covered the interiors of both Hudson’s Bay and the attached Saks Fifth Avenue store, which is also undergoing liquidation. The sight of “Store Closing” banners and empty racks in the once-mighty Queen Street flagship marked a stark, almost unthinkable shift for the historic retailer.

Staff Share Sadness and Frustration

Sales associates and department managers, many of whom had dedicated years of service to the company, expressed deep disappointment over the closure. Several employees who spoke with Retail Insider criticized Hudson’s Bay’s ownership under Richard Baker.

“It didn’t have to be this way,” said one department manager, speaking on the condition of anonymity. “There was no reinvestment in the stores, no strategy to turn things around. Meanwhile, Baker was making money off real estate sales. We were left to watch the stores crumble.”

Staff reflected on how Hudson’s Bay, once a retail powerhouse, gradually faded due to decisions perceived as prioritizing short-term gains over long-term stability.

The End for Hudson’s Bay?

The liquidation sales at Queen Street and five other major locations — including downtown Montreal’s Hudson’s Bay, Toronto’s Yorkdale Shopping Centre, Hillcrest Mall in Richmond Hill, and suburban Montreal stores at CF Carrefour Laval and CF Fairview Pointe-Claire — signal a grim reality: the end could be near for Hudson’s Bay as a traditional retailer.

On Wednesday, April 23, Hudson’s Bay announced that the six stores initially excluded from the wider liquidation strategy were now included. This decision came after it became clear that the likelihood of finding a viable buyer to take over Hudson’s Bay operations was slim.

Financial advisor Adam Zalev of Reflect Advisors acknowledged the difficult reality, noting in court filings last week that the continuation of operations at the six locations was “negatively impacting efforts to repay lenders.” He further stated that keeping the stores open without a buyer would only delay the inevitable.

The company, which filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on March 7, is burdened with $1.1 billion in debt and years of declining performance.

Liquidation Sales Generate Crowds, But Time Is Running Out

Since launching national clearance events in late March, Hudson’s Bay has generated over $235 million in sales across its 74 department stores, two Saks Fifth Avenue locations, and 13 Saks Off Fifth stores. While initial sales were brisk, momentum had slowed until the latest announcement reignited consumer interest.

Friday morning saw a new surge, driven by Hudson’s Bay’s mass email to its customer database with the stark subject line: “You may have heard, we’re closing our doors.” The email also noted the company’s 355-year history — a message that some recipients found jarring and insensitive, given the gravity of the situation.

Still, the weekend turnout at Queen Street suggests that the brand’s deep emotional connection with Canadians remains intact, even as it teeters on the edge of collapse.

Real Estate Interest Surpasses Interest in the Brand

Despite hopes that a saviour might emerge, signs point instead to a breakup of Hudson’s Bay’s vast real estate footprint.

While 18 letters of intent were submitted by parties interested in the retailer’s store leases, none expressed an interest in continuing operations under the Hudson’s Bay banner. Industry experts speculate that landlords and institutional investors, including RioCan, are eyeing key properties for redevelopment or subdivision into smaller retail spaces.

Turning the business around would require significant investment. A confidential pitch memo circulated earlier this month to prospective buyers indicated an $82 million first-year investment would be needed, with profitability unlikely for at least two years. It’s unclear if a buyer willing to undertake that level of risk has come forward.

Loss of a Landmark: Queen Street’s Decline

The Queen Street Hudson’s Bay store, long considered the crown jewel of the chain, has not been immune to the broader challenges facing department stores. Once a powerhouse generating $220 million annually, its fortunes declined sharply in recent years.

Factors contributing to the downturn included a lack of capital investment, changing consumer shopping habits, and external disruptions like construction of the Ontario Line subway project immediately adjacent to the store.

The deterioration was starkly visible this weekend, as empty shelves and discount banners replaced elegant merchandise displays and bustling departments once associated with the flagship.

Art and Artifact Sale Sparks Backlash

Adding to the controversy surrounding Hudson’s Bay’s demise is the company’s plan to auction more than 4,400 pieces from its historical collection, including artifacts dating back centuries and culturally significant items like the 1670 Royal Charter.

While safeguards have been put in place to prioritize Canadian buyers and institutions, the planned auction has drawn sharp criticism. Indigenous groups, heritage organizations, and even federal agencies have raised alarms about the potential loss of national heritage.

Grand Chief Kyra Wilson of the Assembly of Manitoba Chiefs issued a public statement condemning the auction, calling it a continuation of colonial dispossession. Meanwhile, the Canadian Commission for UNESCO’s Memory of the World Committee has called for key artifacts to be transferred to public institutions.

What Comes Next

The court-supervised sale process is set to conclude by April 30. As of now, it remains uncertain whether an offer might save some aspect of the business.

In the meantime, Hudson’s Bay is expected to request an interim cash distribution to secured lenders and an extension of the stay of proceedings beyond the current May 15 deadline.

For many Canadians, the closure of the Queen Street Hudson’s Bay store — and the likely dissolution of the brand — marks the end of an era. Hudson’s Bay is not just a retailer; it is woven into the country’s history, commerce, and culture. Its fall signals the profound changes sweeping the retail landscape, where even the most storied names are not immune to economic pressures, shifts in consumer behaviour, and the relentless rise of e-commerce. As Canadians continue to pass through the historic halls of Hudson’s Bay one final time, they are also witnessing the closing chapter of a brand that once helped shape the nation itself.

More from Retail Insider:

• Hudson’s Bay Closes Final Chapter as Flagship Stores Fall [Photos]
• Court Blocks HBC’s Pick for Employee Counsel, OKs Art Auction
• Hudson’s Bay to Liquidate 6 Remaining Stores, Future Uncertain