Canadian retail group Hudson's Bay Company, North America's oldest corporation, which includes retail company Hudson’s Bay, comprising 80 stores and TheBay.com, will begin a store-by-store liquidation process as early as this week after failing to secure sufficient financing to proceed with a restructuring plan.

The Toronto-based department store retailer, which employs approximately 9,364 people, filed documents with the Ontario Superior Court of Justice on March 14, which said that despite “exhaustive efforts” to secure sufficient financing to pursue a restructuring transaction under the Companies’ Creditors Arrangement Act (CCAA), it has only secured limited debtor-in-possession financing that will require the full liquidation of the entire business.

In a statement, the retailer said it “remains hopeful” that key stakeholders, particularly its landlord partners, will engage in exploring “a viable alternative restructuring path that could preserve jobs, tenancy in retail locations, and a company with deep historic significance before it is too late”.

Liz Rodbell, president and chief executive officer of Hudson’s Bay, said: “Our team has worked incredibly hard to identify a viable path forward, and our resolve is strengthened by the overwhelming support from customers and associates who have shared heartfelt stories about Hudson’s Bay and what our stores have meant to them, their families, and their communities across the generations.

“These powerful experiences remind us why we must continue to pursue every possible opportunity to secure the necessary support from key landlords and other stakeholders to save The Bay.”

Canada’s Hudson’s Bay hoping to secure last-minute financing or be forced to liquidate

As well as operating 80 stores across Canada, including in prominent locations in Toronto, Vancouver and Montreal, the company also operates TheBay.com, as well as three Saks Fifth Avenue stores and 13 Saks Off 5th stores in Canada through a licensing agreement. The Saks Fifth Avenue and Saks Off 5th stores in Canada are expected to remain open during the liquidation process to serve customers in-store “for a limited time” as will TheBay.com online.

The company said it will share additional details regarding impacted locations, closure timelines, and customer accommodations, including final sales events. Once the liquidation sales begin, all sales will be final, the company added.

Last week Canada’s oldest retailer, founded in 1670, cited the current sector-wide challenges facing retail, including the rising cost of living and the weakening Canadian dollar, as well as post-pandemic shifts in shopping patterns and the ongoing trade tensions with the US, including the new and wide-ranging tariffs on exports to the US.

Rodbell added: “Hudson’s Bay remains deeply connected to Canada and is focused on the future. Our goal is to re-establish our foothold and ensure the company’s long-term place in the evolving Canadian retail market.”