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Hudson’s Bay, the Canadian department store chain that has been a going concern since 1670, has filed for bankruptcy.
The oldest retail business in Canada has filed for protection from its creditors amid mounting debt and says that it intends to restructure its business.
The company, which literally began life buying beaver pelts from fur trappers, has struggled with declining foot traffic and sales at its stores since the Covid-19 pandemic struck in 2020.
“While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape,” said Liz Rodbell, president of Hudson’s Bay, in a news release announcing the bankruptcy filing.
Hudson’s Bay became a standalone business following its December 2024 deal to spinoff its Saks Fifth Avenue subsidiary through a combination with Neiman Marcus Group.
As part of that transaction, Saks acquired Neiman Marcus for $2.65 billion U.S., establishing a new entity called Saks Global, which also owns Bergdorf Goodman.
Saks Global doesn’t plan to file for bankruptcy as part of the Hudson’s Bay proceedings.
Headquartered in Toronto, Hudson’s Bay today operates more than 80 stores across Canada and is one of the oldest companies in all of North America.
Since 2008, Hudson’s Bay has been owned by NRDC Equity Partners, a private investment firm controlled by American real estate mogul Richard Baker.
Retailers in Canada are facing pressure from inflation and high interest rates that have squeezed household budgets since the pandemic ended in 2022.
Hudson’s Bay has been laying off corporate and store-level staff for more than a year. In 2023, the company raised $350 million through the sale of real estate to fund its store operations.
The company is no longer publicly traded.
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