Canada’s longest-standing department store is facing its end. Company lawyers revealed in an Ontario court on Monday that The Hudson’s Bay Company plans to liquidate its 96 stores, including iconic Saks Fifth Avenue and Saks Off Fifth locations, due to debt exceeding $1 billion. The plan to shut down the stores, which includes 13 locations in Alberta, is subject to court approval. Retail analyst Bruce Winder said the decline in Hudson’s Bay’s fortunes has been mounting for years. “They started to cut back on investment and capital in the stores and operational expenditure,” he said. “You really started to see the wear and tear in the stores.” Spring sales across HBC locations in Calgary saw discounts ranging from 15 per cent up to clearance pricing. John Kearns made one of his final purchases at the company’s downtown location. “I bought a cashmere sweater,” said Kearns. “I just decided that it was time to buy something good (that will) last me for a little while.” Kearns is hopeful the company might find a lifeline. “It’s certainly a bit of Canadian heritage; that’s their loss,” he said. “But hopefully somebody at least buys the brand.” Earlier this month, Hudson’s Bay filed for creditor protection, citing the impact of changing consumer habits and the rising cost of living. The company, which has struggled financially for years, was on the verge of being unable to meet payroll for its 9,300 employees, whose pensions are now uncertain. Carleton University business professor Ian Lee said the company’s troubles are a result of broader changes in the retail landscape. “Our world is changing in terms of retailing, and The Bay is no longer in that space,” said Lee. “That’s why I don’t think they’re going to be picked up by a hedge fund or anybody else.” Hudson’s Bay has also announced it will stop accepting gift cards after April 6, and its loyalty program has been paused. More than eight million Canadians hold around $58 million in unused points, which are now effectively worthless. “This has been something you can track back at least to the early 2010s. That’s the last time I remember The Bay being really powerful,” said Winder. With changing demographics and the shift toward online shopping, department stores like Hudson’s Bay may be nearing their end. “Younger Gen Xers, millennials and Gen Z shop more at specialty stores or online,” said Winder. The Hudson’s Bay Company has been operational since 1670.
