Hudson’s Bay liquidation could start Tuesday as Canada’s oldest company clings to survival

Attention Bay Day shoppers.

One of the world’s oldest trading companies, Hudson’s Bay Company (HBC), could begin liquidation sales as early as Tuesday depending on the outcome of hearings in an Ontario courtroom to determine the fate of one of Canada’s most recognizable brands. 

At an Ontario Superior Court hearing on Monday, lawyers for the struggling retailer outlined a plan to begin immediate inventory clearance sales across all locations, lasting up to 12 weeks and concluding no later than June 15.

Online sales via TheBay.com will continue “for a limited time.”

The company, known for its legendary black, yellow, red, and green stripes — almost as recognizable as the Maple Leaf — faces an uncertain future as it struggles to find a buyer or financing to keep at least part of its operations afloat.

HBC, founded in 1670, is Canada’s oldest company and has played a defining role in the nation’s history from the fur trade to the modern department store era. 

But now, with mounting debt and unsuccessful attempts to secure new investment, the retailer is preparing for a possible full-scale liquidation of its 80 Hudson’s Bay stores, as well as its three Saks Fifth Avenue and 13 Saks Off Fifth locations in Canada.

However, the company is still seeking a last-minute rescue. If a buyer or new investor steps forward during the liquidation process, some stores could be removed from the sell-off. 

“What we do know is that we need to bring in additional capital to make it possible,” HBC lawyer Ashley Taylor told the court. “And we are looking anywhere we can for that capital.”

HBC has been under court protection from creditors since March 7 after accumulating over $1.1 billion in secured debt. Initially, the company had hoped to restructure by keeping about 40 stores open, but that plan depended on landlords agreeing to waive rent payments and provide financial assistance — an effort that has so far failed.

But what about gift cards and loyalty points?

The bad news for customers is that time is running out to redeem outstanding Hudson’s Bay gift cards, which total about $24.1 million as of February 1. The retailer has set a deadline of April 6 for shoppers to use them during liquidation sales.

Loyalty program members, however, are out of luck. Hudson’s Bay suspended its rewards program, meaning customers can no longer earn or redeem points — effectively making the $58.6 million worth of outstanding points useless.

The potential loss of Hudson’s Bay would mark one of the most dramatic retail collapses in Canadian history.

The court process also allows potential buyers to bid on the company’s leases, brand, and intellectual property— including the company’s famed stripes — that were originally used on blankets and coats in the fur trade era and have been featured on everything from sweaters to canoes. 

If so, the brand itself could live on in some form even if Hudson’s Bay stores vanish. If not, Canada’s most historic retailer may soon become just that — history.