TORONTO – Hudson’s Bay was in court Monday, seeking approval to begin a full liquidation even as it fights to stay alive.
After arguments went on hours longer than expected, judge Peter Osborne said he needed time to review the case and would rule later on the liquidation plan.
Here are some key takeaways from Monday’s court hearing.
Which stores are part of the liquidation?
Hudson’s Bay wants to liquidate all 80 stores, as well as the three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada that it owns through a licensing agreement.
Hudson’s Bay has 32 locations in Ontario, B.C. hosts 16 locations, Alberta and Quebec each have 13, and Manitoba, Nova Scotia and Saskatchewan have two per province.
Saks Fifth Avenue’s Canadian sites are split between Ontario and Alberta, while Saks Off 5th has stores in Ontario, B.C., Alberta, Quebec and Manitoba. Its U.S. stores are not part of the liquidation.
In a sign it hasn’t given up completely, Hudson’s Bay also wants the option to remove some stores from the liquidation process if it can secure additional funding before the process is complete.
As for online shoppers, Hudson’s Bay’s lawyer Elizabeth Pillon said the liquidation will extend to the company’s e-commerce business, which will continue until its Scarborough, Ont., warehouse empties.
What is the timeline for liquidation?
The retailer had asked to start as early as Tuesday, but that will be delayed until it secures court approval, after which it is expected to quickly launch sales.
When Nordstrom left Canada in 2023, liquidation sales began with discounts of five and 10 per cent, surprising some shoppers. The discounts grew steeper as time went on.
Court heard that the liquidation process at Hudson’s Bay will take up to 12 weeks. In court filings, the company said it wants to wrap up by June 15.
Will the Bay’s “stores within a store” be included in the liquidation?
It depends. Pillon said some of these stores within a store have asked for inventory to be removed, but others are interested in participating in liquidation. She did not name which vendors fall into which group.
What happens to Hudson’s Bay gift cards?
The company will stop accepting gift cards after April 6 and has already stopped selling them. As of Feb. 1, Canadian customers had outstanding gift cards worth a total value of about $24.2 million.
What happens to Hudson’s Bay Rewards?
The loyalty program has been paused while the creditor protection process continues. More than 8.2 million Canadian customers hold about $58.5 million in unused points.
What happens to staff?
The liquidation places 9,364 jobs at risk, the bulk of which are in Ontario.
Some 121 employees will be encouraged to stay on with a total of $2.7 million in monetary incentives paid by Sept. 30, Taylor said. The company asked for the terms of this payment process to be sealed to maintain employee confidentially.
Andrew Hatnay, a lawyer representing employees, opposed the company’s plan to immediately begin selling off inventory. Hatnay said the winding down of Hudson’s Bay will amount to one of the largest mass terminations in the country since Sears Canada folded.
He asked for the court to delay the selloff by one week, saying “once liquidation starts, it becomes a self-fulfilling prophecy” because once customers rush in to buy up all the inventory, Hudson’s Bay will be left with so few options to move forward that “the business will be finished.”
What happens to worker pensions?
The company’s pension plan had 4,000 active and inactive members with defined benefit entitlements and about 17,000 active and inactive members with defined contribution entitlements as of Dec. 31, 2024.
The pension plan is “sufficiently funded and is able to satisfy its liabilities,” court documents say.
What does the mean for Hudson’s Bay’s head office?
Hudson’s Bay leases an office tower in downtown Toronto on Bay Street, which is managed by a third party. It is not part of the liquidation.
This report by The Canadian Press was first published March 17, 2025.
