The Hudson’s Bay Company plans to close all of its stores after failing to secure the necessary financing for a restructuring under the Companies’ Creditors Arrangement Act (CCAA).

The iconic retailer, which operates 80 Hudson’s Bay stores and four distribution centres across Canada, announced late Friday that it has secured only limited debtor-in-possession financing that will require a full liquidation. Plans also call for the liquidation of three Canadian Saks Fifth Avenue and 13 Saks Off Fifth stores that the company operates under a licensing agreement.

Assuming court approval is granted following a comeback motion Monday, the liquidation process will commence this week, said the company. Court was told Monday that all stores could close within 10 to 12 weeks, The Globe and Mail reported.

The company’s lawyers told the court that the liquidation process would offer the best chance to maximize the value of the business. But Hudson’s Bay remains hopeful that a last-minute alternative restructuring solution could emerge through co-operation from key stakeholders, particularly landlords.

“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,” said Liz Rodbell, the firm’s president and CEO, in a Friday news release.

“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.”

The chain employs approximately 9,364 people. Hudson’s Bay warns that its closure would not only eliminate thousands of jobs but also significantly impact shopping malls across Canada by removing a major retail anchor and driver of foot traffic.

Plans call for the Hudson’s Bay and Saks-branded stores, to continue operating. The company will provide further details on specific store closures, customer accommodations, and final sales events. Once liquidation sales begin, all purchases will be final.

A Hudson’s Bay-RioCan joint-venture has also received a stay of proceedings from the court, which previously approved $16 million in debtor-in-place financing. The debtor-in-place support has been increased to $23 million, the Globe reported Monday.

The funds are being provided by Restructure, an affiliate of British private-equity firm Hilco, which specializes in reviving distressed assets. The reported recently that Hudson’s Bay could close as many as 40 stores as part of the restructuring effort.

But the company’s announcement Friday and court comments Monday indicate that the restructuring effort has been more more difficult than originally anticipated.

Hudson’s Bay is Canada’s oldest company dating back to 1670. The company has cited various financial difficulties, including rising costs of living, reduced consumer spending, and the lingering impacts of the pandemic. HBC stated that trade tensions and new tariffs have disrupted refinancing efforts, making it difficult to secure capital after the company refinanced a portion of its credit facility in early 2025.

Primaris REIT is among the landlords that could be affected by the store closures. The REIT has 10 HBC locations located across Canada in its portfolio totalling 1.12 million square feet of gross leasable area.

Hudson’s Bay is the 12th-largest tenant by annualized minimum rent for Primaris, generating approximately $11.6 million in gross rental revenue per year, the REIT said in a news release last week.

The potentially affected stores range from locations in the Les Galeries de la Capitale mall in Quebec City to Orchard Park Shopping Centre in Kelowna, B.C.

Primaris said it has been preparing for the possibility of Bay store closures for years. The REIT has detailed plans for all 10 locations and is “ready to take action if and when any locations are disclaimed.”

Court filings and other information related to Hudson’s Bay’s CCAA proceedings can be found on court monitor Alvarez & Marsal’s website at www.alvarezandmarsal.com/HudsonsBay. Additional inquiries can be directed to the monitor’s hotline at (416) 847-5157 or via email at [email protected].

Pictured: Hudson’s Bay store in downtown Vancouver.

Photo: Elena_Alex_Ferns / Shutterstock.com