Hudson’s Bay, Canada’s oldest retail chain, has filed for creditor protection in an effort to restructure the business.
While talking about the development, Liz Rodbell, president and CEO of Hudson’s Bay, said: “Hudson’s Bay has been a vital retailer to Canadians for generations, and this decision was made with the best interests of our customers, associates and partners in mind.
“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, despite the sector-wide challenges that have forced other retailers to exit the market. Now more than ever, it is critical that Canadian businesses are protected and positioned to succeed.”
While talking to BNN Bloomberg recently, Retail Analyst Bruce Winder said most people in retail are not surprised about the announcement.
Winder said: “I think most people realize that its days were numbered.
“They’ve really starved the chain from capital over the last several years. I’m only guessing that sales are declining.”
The chain operates more than 80 stores across Canada and became an independent business after it split from Saks Fifth Avenue in December 2024.
Hudson’s Bay had announced that 41 members of their staff were sacked due to “challenging headwinds” that affected the retail industry in January.
According to Winder, Neiman’s acquisition for US$2.65 billion was a strategic move to form Saks Global, indicating the potential divestment of Hudson’s Bay.
The Wall Street Journal reported that the new entity is not expected to file for bankruptcy.
Winder noted that the channel that Hudson’s Bay has been trading in, which is the department store, has been in decline in North America over the last decade.
He said: “They really didn’t invest in the brand.”
The shift in shopping habits of consumers from department stores also added to its struggles.
Though the pandemic was a big influence, there were issues beyond that.
Winder said: “A lot of good companies have rebounded since the pandemic, but their business model, unfortunately, was broken before then.”
He added that department stores closing due to lost business has become a trend in North America.
Stores like Macy’s and Nordstrom have either gone private or have been struggling “big-time,” Winder stated.
The reason for this is the consumer’s shopping behaviours.
He said: “Consumers weren’t brought up on department stores.
“They’re bought up brought up on buying from Amazon or buying from individual specialty stores.”
