Iconic Canadian Department Store Hudson’s Bay Files for Creditor Protection

By Rob Bates | March 10, 2025

Hudson’s Bay Company, the 355-year-old department store that is considered the oldest retail chain in North America, has sought an initial order for creditor protection, the Canadian version of Chapter 11.

The store, which has 80 locations throughout Canada, said in a statement it is exploring “strategic alternatives” to stay in business.

In the statement, Hudson’s Bay president and CEO Liz Rodbell said the company had tried to negotiate a settlement with its creditors, but “the threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions.”

She added: “Now more than ever, it is critical that Canadian businesses are protected and positioned to succeed.”

In addition to the uncertainty posed by tariffs, Hudson’s Bay was affected by the post-pandemic shift to working from home and general “economic headwinds,” according to the corporate statement.

“Rising costs of living, higher mortgage rates, and a weakening Canadian dollar have strained household budgets,” it said.

Hudson’s Bay was purchased by NRDC Equity Partners, a private investment firm controlled by real estate mogul Richard Baker, in 2008. At the time, NRDC also owned two noted U.S. department stores, Lord & Taylor and Fortunoff, which both eventually liquidated.

In 2013, Hudson’s Bay Company bought Saks Fifth Avenue. Baker recently merged Saks with his newest acquisition, Neiman Marcus. The resulting company, Saks Global, separated from Hudson’s Bay last year.

The Hudson’s Bay proceedings do not affect the operations of Saks Global, the company said.

Long publicly traded, Hudson’s Bay went private in 2020. Court papers related to its insolvency proceedings can be seen here.

Top: A rendering of the Hudson’s Bay store in Montreal (courtesy of Hudson’s Bay)