A Timeline Of The Hudson's Bay Company's History And Insolvency

The Hudson's Bay Company (HBC), founded on May 2, 1670, has been a cornerstone of Canadian history, evolving from a fur trading enterprise into a prominent retail chain. Its iconic striped wool blankets and expansive department stores became symbols of Canadian heritage. However, recent financial challenges have led the company to seek creditor protection.

In the early 2000s, HBC underwent several ownership changes. In 2006, American businessman Jerry Zucker acquired the company for $1.1 billion and assumed the roles of Governor and CEO. Following Zucker's passing in 2008, his wife, Anita Zucker, became the first female Governor in HBC's history. Later that year, NRDC Equity Partners, led by Richard Baker, purchased HBC for slightly more than $1.1 billion.

Under Baker's leadership, HBC expanded its portfolio by acquiring American department store chains Lord & Taylor in 2012 and Saks Fifth Avenue in 2013. The company also entered joint ventures, such as the 2015 partnership with RioCan REIT, contributing properties and subleasing them back to operate stores. Despite these efforts, HBC faced mounting financial pressures.

By 2023, HBC was grappling with significant debt and declining sales. The company laid off approximately 500 corporate employees and secured a $200 million credit facility to maintain operations. In November 2023, HBC raised an additional $340 million through real estate transactions but continued to struggle financially.

In March 2025, HBC filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA), revealing $1.1 billion in outstanding secured debt. The company cited economic challenges, including reduced consumer spending and the impact of trade tensions, as factors contributing to its financial distress. Court documents indicated a net loss of approximately $329.7 million for the 12-month period ending January 31, 2025.

Following court approval, HBC began liquidating inventory in most of its stores, including 80 Hudson's Bay locations, three Saks Fifth Avenue stores, and 13 Saks Off 5th shops across Canada. The liquidation sales are scheduled to continue until June 15, with plans to vacate the affected stores by June 30. Six stores, including flagship locations in Toronto and Montreal, will remain operational due to unexpectedly strong sales. The company is actively seeking a long-term financial solution to preserve its remaining operations.