Canada’s Hudson’s Bay has survived 355 years. Now the store is in crisis
Canada’s oldest retailer, Hudson’s Bay department store, cannot pay its debts.
The high-end chain, dating back to the 17th-century fur-trade era, has been losing money and shoppers, set back by the pandemic, inflation and lately, trade tensions with the U.S. Now, it’s entered a proceeding similar to bankruptcy protection and expects to close some stores.
“The threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions,” CEO Liz Rodbell said in a statement, referring to recent attempts to shore up investments.
On Monday, a judge in Toronto granted Hudson’s Bay creditor protection, which lets the company try restructuring its debt and regaining financial footing. He began his ruling with a wistful note about the chain:
“It is hard not to have a sense of melancholy when considering the Application before me,” wrote Justice Peter J. Osborne of the Ontario Superior Court of Justice. “Hudson’s Bay is the oldest company in North America and a very prominent Canadian department store. It was founded in 1670. Now, approximately 355 years later, it is insolvent and seeks protection from its creditors.”
Hudson’s Bay historically is known for striped wool blankets that were originally traded for beaver pelts. Now it runs about 80 stores, after several waves of closures and layoffs. The chain also has licenses to run some Saks Fifth Avenue and Saks Off 5th locations in Canada — remnants of once-joint ownership.
The parent company, called HBC, purchased the U.S. chains Neiman Marcus and Bergdorf Goodman last year, combined them with Saks and later spun off the Hudson’s Bay department-store chain into a standalone entity. HBC is controlled by American real estate mogul Richard Baker, who previously also owned and then sold the luxury chain Lord & Taylor, which later filed for bankruptcy.
High-end department stores have struggled across North America. The pandemic, a boon for online shopping and work-from-home policies, hurt foot traffic. Then, inflation had people tightening their budgets for non-essentials. And luxury brands — a mainstay of department stores — are increasingly trying to connect directly with shoppers and open their own retail locations.
In Friday’s court filing, Hudson’s Bay representatives wrote that the chain was “facing significant challenges to its ability to make payments,” including to landlords and suppliers, “and absent additional funding, will be unable, within the next several days, to meet its employee payroll obligations.” The company listed 9,364 workers.
“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,” CEO Rodbell said of filing for creditor protection. “Now more than ever, it is critical that Canadian businesses are protected and positioned to succeed.”
Part war propaganda, part comic strip, Bayeux Tapestry to return to U.K.
On a state visit, France's president announced the loan of the tapestry embroidered with scenes of the 1066 Norman invasion. It will return to the U.K. for the first time in more than 900 years.
State Department undergoes deep cuts in sweeping reorganization
The State Department is slashing hundreds of jobs in what's being called its biggest shake-up in decades — drawing sharp criticism from former diplomats who say the cuts risk gutting America's diplomatic muscle.
Next time you see a vulture picking over a carcass, say ‘thank you!’
Large scavengers like vultures and hyenas do an important job in protecting human health. But studies show these creatures are on the decline, allowing for the emergence of disease.
How 3 Muslim sisters helped change the rules of American women’s wrestling
Jamilah, Zaynah and Latifah McBryde grew up wrestling one another in Buffalo, N.Y. Coaches recognized their talent, but they couldn't wear the required wrestling singlet due to their faith.
What AI bot started referring to itself as ‘MechaHitler’? Find out in the quiz
Elon Musk and his AI have been busy. So has the TSA. And Amazon. Were you paying attention?
As Democrats spoil for a fight, a new face in the House is leading them on oversight
Rep. Robert Garcia is the new top Democrat on the House Oversight Committee. At a moment when his party is craving more confrontation with President Trump, he says he's ready to lean into the fray.