March 7, 2026 marks one year since Hudson’s Bay sought creditor protection under the Companies’ Creditors Arrangement Act, a moment that fundamentally reshaped Canada’s retail landscape. For many observers, the Hudson’s Bay CCAA filing marked the collapse of a 355-year-old institution that had been woven into the country’s commercial and cultural fabric since the fur-trading era.
The filing ultimately led to the complete liquidation of Hudson’s Bay’s Canadian operations, the closure of its stores, and the loss of thousands of jobs. More broadly, it accelerated conversations about the future of department stores, the evolution of shopping centres, and the changing nature of retail real estate in Canada.
Retail expert Carl Boutet, who commented extensively on the situation during the unfolding proceedings, says the outcome was not entirely surprising when viewed through the lens of the company’s ownership structure and financial burden.
“In hindsight, the moment the writing was on the wall was when HBC got carved out from Saks Global,” Boutet said in an interview. “When the company pivoted toward a global strategy and the Canadian banner was separated from that structure, it was clear that Hudson’s Bay would be left to fend for itself.”
That moment, he argues, set the stage for the events that followed.
The Financial Reality Behind the Collapse
At the time of the Hudson’s Bay CCAA filing in March 2025, the company’s financial position was already dire. Court filings revealed the retailer had roughly $3 million in cash on hand, while carrying more than $1.1 billion in secured debt and hundreds of millions in unpaid obligations to suppliers and landlords.
The liquidity crisis was immediate. Without new financing, the company warned it would soon be unable to meet payroll obligations. At the time of filing, Hudson’s Bay employed more than 9,000 people across Canada.
Hudson’s Bay and others cited several structural factors behind the insolvency. Among them were declining foot traffic in physical stores, rising occupancy costs for downtown flagship locations, and the ongoing shift toward e-commerce. A lack of investment in stores was also a huge factor.
Boutet believes the financial burden alone does not fully explain the collapse.
“It wasn’t just the debt,” he said. “It was the erosion of goodwill. Suppliers, landlords, and partners still wanted to see Hudson’s Bay survive. But that goodwill was destroyed over time.”
He added that rebuilding trust became increasingly difficult as the situation deteriorated.
“You’re not talking about destroying goodwill that was built over five years. You’re talking about destroying goodwill that was built over 300+ years.”
From Restructuring to Liquidation
Initially, the creditor protection filing was framed as an opportunity to restructure the company and preserve at least part of its operations.
The court approved a $16 million debtor-in-possession financing facility intended to stabilize operations and fund payroll, rent, and other immediate expenses.
However, the restructuring effort collapsed quickly.
Within one week of filing, Hudson’s Bay announced that it would begin liquidating its entire business if additional financing could not be secured. The announcement put thousands of jobs at risk and signaled the likely end of the historic retailer.
Liquidation sales began in late March 2025 and ultimately exceeded financial projections. Between mid-March and early May, hundreds of millions of dollars in merchandise were sold as the company wound down operations.
By June 1, 2025, all remaining Hudson’s Bay stores across Canada had closed permanently.
The shutdown marked the end of the oldest operating company in North America.
The Human Impact
Behind the financial and legal proceedings was a profound human toll.
Court filings indicated that approximately 8,347 employees were terminated as the company liquidated its retail operations.
Many of the affected workers had spent decades with the retailer, particularly in downtown flagship stores that had served as major employers in urban centres.
The CCAA proceedings also raised concerns among employees and retirees about pensions, severance, and benefit protections. Unions representing some of the workforce urged the company to safeguard wages and benefits as the restructuring process unfolded.
While some corporate employees remained temporarily to assist with the wind-down and legal administration of the estate, the majority of the workforce was gone by early summer 2025.
The Sale of the Hudson’s Bay Brand
Although the physical stores disappeared, the Hudson’s Bay brand itself survived.
In June 2025, Canadian Tire Corporation acquired the company’s intellectual property portfolio for approximately $30 million. The deal included the iconic multicoloured HBC Stripes, the Hudson’s Bay name, the coat of arms, and several private-label brands.
Canadian Tire described the purchase as a form of stewardship of an important Canadian retail symbol.
The transaction created the possibility that Hudson’s Bay products could appear in various forms across Canadian Tire’s network of stores, which includes SportChek, Mark’s, and Party City.
Boutet believes the brand still carries value.
“Wherever there’s brand equity, there’s value to be monetized,” he said. “The question is how that value is expressed in the future.”
Some observers have speculated about potential future concepts, including specialty retail formats or tourism-oriented stores celebrating Canadian heritage.
For now, however, the Hudson’s Bay name exists primarily as a brand rather than a retail network.
Ruby Liu’s Attempt to Revive the Department Store
One of the most dramatic chapters of the CCAA process involved Vancouver-based entrepreneur Ruby Liu, who attempted to acquire up to 28 former Hudson’s Bay leases in order to launch a new department store concept.
Hudson’s Bay reached an agreement to pursue the lease assignments in May 2025, and Liu made deposits totaling more than $15 million as part of the proposed transaction.
However, landlords strongly opposed the deal.
They raised concerns about the viability of the proposed business model and Liu’s ability to meet the long-term obligations associated with the leases.
Following a contested court hearing, the Ontario Commercial Court ultimately sided with the landlords and blocked the forced assignment of 25 of the leases.
The decision was widely seen as significant because it reinforced the rights of property owners to control tenanting within their properties.
Boutet recalls his early meeting with Liu during the spring of 2025.
“What struck me was that we talked a lot about philosophy and about creating destinations,” he said. “I got the impression that she saw these large boxes almost like mini malls.”
The concept involved dividing large spaces into curated environments hosting multiple brands and experiences.
While Boutet found the idea interesting, he also had reservations.
“My concern was that the concept hadn’t been proven elsewhere,” he said. “If you believe in the model, you need to demonstrate it first in your own malls.”
Although the court blocked the majority of the lease assignments, Liu retained three locations at malls she already owned in British Columbia. Sources at Central Walk indicate that no Ruby Liu department store concept will be moving forward at these locations.
The Changing Role of Department Stores
The collapse of Hudson’s Bay reignited debate about the future of the department store format in North America.
Boutet believes the sector may eventually reinvent itself in new forms.
“Commerce moves in cycles,” he said. “We’ve seen swings from big box to specialty retail and back again.”
One possibility is a hybrid model combining retail with food, entertainment, and social experiences. Such concepts were central to early department stores but faded over the past several decades.
“There may be opportunities to go back to those origins,” Boutet said.
However, he acknowledges that the appetite for massive retail spaces appears to be declining.
As online shopping captures a larger share of consumer spending, retailers are reconsidering the size of their physical footprints.
“If 20 or 30 percent of consumption moves online, then maybe stores deserve to be 20 or 30 percent smaller,” he said.
The Impact on Shopping Centres
Hudson’s Bay’s disappearance has also reshaped the structure of shopping centres.
For decades, department stores served as anchor tenants at the ends of malls, forming the so-called “barbell” model that drove traffic through the property.
That model has been eroding for years.
“I don’t think department stores have been driving traffic in malls for at least a decade,” Boutet said.
Instead, malls are increasingly relying on a mix of residential development, entertainment uses, grocery stores, and medical services to attract visitors.
Large former department store spaces are now being redeveloped for a variety of purposes, including mixed-use projects that combine retail with housing and offices.
The Legal and Financial Legacy
Even a year after the initial filing, the legal process surrounding Hudson’s Bay remains ongoing.
The stay of proceedings in the CCAA process has been extended several times as the court-appointed monitor continues to administer creditor claims and finalize the company’s remaining obligations.
The proceedings involve complex issues including creditor recoveries, lease disputes, and asset sales.
Secured lenders have already received partial repayments from liquidation proceeds, while unsecured creditors face significant shortfalls.
The process has also generated legal disputes involving landlords and other stakeholders.
As of early 2026, the monitor continues to oversee the wind-down of the estate and the resolution of outstanding claims.
(courtesy Library and Archives Canada/1971-271 NPC)
Looking Back at a Retail Institution
For many Canadians, Hudson’s Bay was more than a retailer.
Founded in 1670 as a fur trading company, it played a central role in the country’s early economic development before evolving into one of Canada’s most recognizable department store chains.
Its multicoloured stripe motif became a symbol of Canadian heritage.
Boutet believes the closure carries a cultural weight that exceeds the financial scale of the business.
“Even though Sears Canada was financially larger when it collapsed, Hudson’s Bay had a deeper historical and social impact,” he said.
The company’s disappearance triggered widespread public interest and nostalgia.
“It generated more public attention than almost any retail closure we’ve seen,” Boutet said.
