The future of the Hudson’s Bay Company took a critical turn this week as court documents revealed plans to begin liquidation sales at six prominent locations not previously in liquidation. The move marks a potentially final chapter for a company that has been interwoven with the history of Canada for over 350 years.
Clearance sales at the six stores — which had previously been excluded from the retailer’s larger liquidation strategy — are set to commence Friday, April 25. The stores include two flagships: the historic Queen Street store in downtown Toronto and the Sainte-Catherine Street location in downtown Montreal, as well as stores in Toronto’s Yorkdale Shopping Centre, Hillcrest Mall in Richmond Hill, CF Carrefour Laval in Laval, and CF Fairview Pointe-Claire. A licensed Saks Fifth Avenue store connected to the Queen Street Hudson’s Bay will also be liquidated.
“This decision underscores the low probability of a buyer emerging to continue operating these locations,” said Adam Zalev, Managing Director of Reflect Advisors and the financial advisor to Hudson’s Bay Company. “Keeping these stores out of the liquidation was negatively impacting our efforts to repay lenders.”
Zalev’s comments came in a sworn affidavit submitted as part of the company’s court-supervised restructuring under the Companies’ Creditors Arrangement Act (CCAA). Hudson’s Bay was granted creditor protection on March 7, 2025, after succumbing to $1.1 billion in debt and years of mounting losses.
Liquidation Performance and Market Realities
Since the launch of nationwide clearance events in late March, the Hudson’s Bay has generated over $235 million in sales across 74 department stores, as well as two Saks Fifth Avenue and 13 Saks Off Fifth locations. The initial consumer frenzy, driven by nostalgic loyalty and deep discounts, has since slowed.
Retail analyst Carl Boutet told Retail Insider, “Liquidation sales are often the most profitable period in a retailer’s life cycle. Consumers are highly motivated when they think it might be their last chance to shop somewhere.”
Boutet added, “Bringing these six stores into the liquidation process is not necessarily the end, but it signals that no credible interest has emerged to keep the business running in any recognizable format.”
Indeed, a confidential pitch memo reviewed by prospective buyers earlier this month outlined an $82 million first-year investment required to turn around operations at the six remaining stores. It would take an estimated two years to make such a business profitable. Zalev confirmed in his Wednesday affidavit that no viable bidder stepped forward.
The End of a Retail Era?
For decades, Hudson’s Bay’s flagship stores stood as landmarks of Canadian retail, cultural memory, and civic identity. But like many legacy department stores in North America, the brand has struggled to modernize amid shifts to e-commerce, rising operating costs, and declining foot traffic.
“Even five years ago, the idea that these flagship stores could close was unthinkable,” said Boutet. “What we’re seeing now is the collapse of a model that simply couldn’t keep up.”
The Queen Street store in Toronto, once considered a $220 million annual sales powerhouse, has seen declining performance in recent years, exacerbated by a lack of investment and recent infrastructure disruptions from adjacent subway construction. Montreal’s downtown store, with a similar legacy, also faces significant renovation needs.
“These buildings are massive, historic, and expensive to maintain,” said Boutet. “Without serious capital investment, they simply aren’t viable.” He noted that estimates to refurbish the former downtown Winnipeg Hudson’s Bay flagship are estimated to be over $300 million.
Interest in Leases, But Not the Brand
While 18 letters of intent have been submitted for Hudson’s Bay leases, they do not reflect interest in continuing operations under the brand itself. “It’s a strong sign that potential bidders are more interested in the real estate footprint than in the retail business,” said Boutet.
Boutet speculates that landlords such as RioCan and other institutional players may be aiming to reclaim space for redevelopment or to subdivide the large-format stores for multiple tenants.
“We’re likely to see the same pattern that followed Sears’ collapse in Canada,” added Boutet. “Anchor spaces get carved up, and malls reposition with newer, more agile tenants.”
Art and Artifact Auction Raises Ethical Questions
Compounding the retailer’s unraveling is a controversial plan to auction over 4,400 pieces from the Hudson’s Bay art and historical artifact collection. This includes more than 1,700 artworks and 2,700 culturally significant artifacts — among them, the 1670 Royal Charter that established the company.
“This is not just a piece of paper; it’s a foundational document in Canada’s colonial history,” said Boutet. “It granted Hudson’s Bay dominion over land it claimed without Indigenous consent.”
Heffel Gallery Limited has been selected to conduct the auction. In consultation with court-appointed Monitor Alvarez & Marsal, Heffel will implement safeguards to prioritize Canadian buyers and institutions.
Yet opposition to the sale is growing. On April 22, Grand Chief Kyra Wilson of the Assembly of Manitoba Chiefs issued an urgent plea to halt the auction.
“Selling these items at auction without full transparency and consultation with impacted First Nations would not only be morally irresponsible but also represent a continuation of colonial dispossession,” she wrote.
The Assembly has called for the publication of a full item catalogue, a First Nations-led review, and discussions on repatriation or shared stewardship.
Other voices have echoed these concerns. The Canadian Commission for UNESCO’s Memory of the World Committee requested that the 1670 Charter be transferred to a public archival institution like the Archives of Manitoba. The Department of Canadian Heritage has also reminded HBC that certain items may require export permits under the Cultural Property Export and Import Act.
More Than Just a Business Closure
Boutet sees the liquidation and artifact sale as reflective of broader societal shifts. “There was a time when service to a company was valued so deeply that employees received gold watches for loyalty,” he said, referencing a vintage Hudson’s Bay timepiece he owns. “Now, we’re watching the last pieces of that legacy get boxed up and sold off.”
While the sale process officially ends on April 30, the future remains uncertain. The court has yet to rule on the art auction protocols, and Hudson’s Bay is expected to request an interim cash distribution to secured lenders while seeking a stay extension past May 15.
“It feels like we’re nearing the end of Hudson’s Bay as we’ve known it,” said Boutet. “But the company’s intellectual property and legacy may yet be reborn in another form.”
For now, all eyes remain on the outcome of a potential buyer, liquidation sales, artifact auction, and the legacy of a Canadian institution that has shaped the nation’s commerce and culture for centuries.
