In a major development that marks the end of an era in Canadian retail, The Hudson’s Bay Company (HBC) has filed for bankruptcy protection. Beginning Monday, liquidation sales commence at 74 Hudson’s Bay department stores across Canada, with only six locations set to remain open—including three in Ontario and three in Quebec.

The restructuring also impacts HBC’s licensed luxury banners in Canada, with two of the three Saks Fifth Avenue stores—at CF Chinook Centre in Calgary and CF Sherway Gardens in Toronto—also slated for liquidation, alongside all 13 Canadian Saks OFF 5TH stores.

While the news had been rumoured for weeks, the scale of the fallout has shocked observers and devastated staff. Retail employment expert Suzanne Sears, President of Best Retail Careers International, said the human toll of the shutdown is far-reaching.

“Roughly 10,000 people are directly employed by HBC, but when you include contractors and staff from brand shop-in-shops—cosmetics, jewelry, fashion—the number rises closer to 15,000,” said Sears in an interview. “Many of these individuals are career Bay employees. Some have been with the company for 30, 40, even 50 years.”

Devastation on the Sales Floor

Sears visited several stores in Ontario over the past week, including Mapleview in Burlington, Oakville Place, and CF Lime Ridge Mall in Hamilton. She described emotional scenes of employees clinging to hope.

“Staff were hugging each other and crying. They’re devastated,” she said. “These are not just casual jobs—these are people who gave their lives to this company.”

Despite heavy foot traffic amid the sales, she noted an eerie atmosphere in stores.

“All the escalators were turned off. Even elevators weren’t working in some locations. You have to leave the store and use the mall escalators just to change floors,” she said.

Sears was also surprised by the quality of certain departments.

“The men’s departments were immaculate, especially at Mapleview. Beautifully merchandised and stocked—it’s ironic to see that just before liquidation.”

Liquidators Move In, Inventory Stripped

Sears confirmed that external liquidation firms have already taken control, with some cosmetic and perfume counters cleared out and jewelry cases emptied.

“Most luxury beauty brands have pulled their inventory already. You’re seeing empty displays and discount racks resembling Winners stores—chaotic, messy, and picked over,” she explained.

Several international liquidation specialists are reportedly preparing to ship in additional inventory to keep stores stocked throughout the sales.

Employment Fallout and the Bigger Picture

The job losses are not only significant in scale but pose a challenge for the Canadian job market. Sears questioned how the industry would absorb so many displaced professionals.

“There are very few companies left in Canada that can take on full teams of inventory specialists, planners, senior buyers, and regional managers,” said Sears. “These were not just cashiers—these were experts in their fields.”

She warned that older employees in particular will struggle.

“Where do you place someone in their late 50s who’s only ever worked at HBC? Retail was once considered a career. This erodes that notion completely.”

While Sears expects some staff—especially those in luxury sales or specialized departments like men’s tailored clothing—to find work elsewhere, the broader picture is grim.

“People from the Olson shop, men’s suiting, or high-end cosmetics counters will land on their feet. But general merchandise staff? They’re facing limited opportunities,” she said.

Lack of Communication and Support Raises Alarm

Sears was critical of the company’s internal communication with staff, many of whom reportedly had no idea if they were scheduled for shifts beyond this week.

“HBC should have communicated clearly with every employee about their status, exit strategy options, and mental health resources. Leaving people in the dark is unconscionable,” she said.

She also questioned whether employees will receive severance or termination pay.

“In most bankruptcies, staff simply lose out. There’s no union protection for most HBC employees. They’ll be the last to be considered when creditors get paid.”

Retail Careers in Question

Sears didn’t mince words when asked about the long-term prospects for retail workers in Canada.

“This is a death blow to retail as a career. Department stores once offered long-term, well-paid jobs. That era is gone,” she said. “Unless you’re with a luxury European brand—which tend to treat staff better—it’s no longer a viable path.”

She cited La Maison Simons as a Canadian brand that may thrive in the wake of HBC’s collapse.

“Simons is very Canadian, very loyal to its people. They’ll benefit from this, as consumers and workers alike seek alternatives,” she noted.

She also noted the strengths of luxury multi-brand retailer Holt Renfrew, the last of its kind in Canada as Saks prepares to exit the country. 

The American Ownership Question

Sears placed much of the blame on HBC Governor Richard Baker and the American private equity model behind the company’s strategy.

“This is Sears Canada all over again. The company was stripped for parts by American interests,” she said. “There needs to be government oversight to prevent these leveraged buyouts from destroying Canadian institutions.”

She pointed to the broader trend of American ownership hollowing out Canadian retail—not just in stores, but also in media and e-commerce infrastructure.

“If we’re going to allow foreign firms to run our largest employers, we need conditions: Canadian head offices, Canadian decision-making, and Canadian employment guarantees,” she insisted.

What Happens Next for Workers?

Sears advised displaced employees to invest in professional resume help and job coaching, especially given the shift toward AI-driven recruitment systems.

“Many of these workers haven’t applied for a job in decades. They were promoted or poached. Now they need to learn to compete in a completely different job market,” she explained.

For those who remain at the six Hudson’s Bay stores still operating, the future remains uncertain. Sears noted that liquidation sales could extend into late spring or early summer, depending on how quickly merchandise sells through.

“Some staff will be rehired on short-term contracts to support these sales, but full-time roles are disappearing fast,” she said.

Final Thoughts: A Canadian Institution in Crisis

The demise of Hudson’s Bay’s full retail footprint is more than a financial collapse—it’s a cultural reckoning.

“This isn’t just about stores closing,” Sears emphasized. “It’s about the loss of a trusted brand, of careers, of stability, and of faith in the system.”

She called on provincial and federal governments, as well as industry organizations like the Retail Council of Canada, to do more.

“Retail is the largest private-sector employer in the country. Yet when crises hit, workers are abandoned. This has to change.”

More from Retail Insider:

• Hudson’s Bay to Liquidate Most Stores, Six Stay Open
• Hudson’s Bay Faces Largest Liquidation in Canadian History