Hudson’s Bay, Canada's oldest company, to liquidate all but 6 stores starting Monday

Apnews - Mar 21st, 2025

An Ontario court has granted Hudson's Bay, Canada's oldest company, the permission to begin liquidating most of its stores across Canada starting Monday. The decision allows the retailer to sell off inventory at 80 Hudson's Bay locations, along with three Saks Fifth Avenue and 13 Saks Off 5th stores. Six stores, including the flagship on Yonge Street in Toronto, will remain open due to recent higher-than-expected sales. The company, which was founded in 1670, faces significant financial difficulties and is seeking ways to avoid complete liquidation.

The liquidation stems from challenges such as decreased consumer spending, trade tensions between Canada and the U.S., and a post-pandemic decline in downtown store traffic. Hudson's Bay filed for creditor protection on March 7, attempting to stave off liquidation by finding a restructuring solution quickly. While the liquidation may save some of the 9,364 jobs at risk, the company is under pressure to find long-term financial solutions to sustain its operations. The sales process for assets like leases is underway, with all sales final at liquidating stores.

Canada Retail Hudson's Bay Liquidation Ontario Superior Court Financial Struggles

Story submitted by Fairstory

RATING

6.8

Fair Story

Consider it well-founded

The article provides a generally accurate and timely account of Hudson's Bay's liquidation process, effectively highlighting the retailer's historical significance and current financial challenges. While the narrative is clear and accessible, it could benefit from a broader range of perspectives and more detailed financial information to enhance balance and transparency. The story is of significant public interest, given the potential economic impact and job losses, but its ability to drive meaningful discussion or policy changes is limited by the lack of in-depth analysis and diverse viewpoints. Overall, the article serves as a solid informational piece but could be strengthened by incorporating more comprehensive insights and stakeholder perspectives.

Accuracy

The article provides a generally accurate account of Hudson's Bay's liquidation process, citing a court's approval to liquidate all but six stores. The article correctly identifies the stores that will remain open and mentions the company's historical significance, which aligns with known facts. However, some financial details, such as the exact debt figures and specifics of the creditor protection filing, are not fully detailed, leaving room for further verification. The mention of improved sales performance that allowed six stores to remain open is consistent with known reports, supporting the article's accuracy.

Balance

The article primarily focuses on the court decision and the financial struggles of Hudson's Bay, with limited perspectives from stakeholders such as employees, customers, or industry analysts. While it mentions the potential impact on jobs, it does not provide viewpoints from those directly affected. The narrative could benefit from a broader range of perspectives to present a more balanced view of the situation.

Clarity

The article is clearly written, with a logical structure and straightforward language that makes it easy to understand. The use of direct quotes from the court and company representatives helps clarify the situation. However, the repetition of certain details, such as the historical significance of Hudson's Bay, could be streamlined to enhance clarity.

Source quality

The article cites a court ruling and includes statements from a company lawyer, which are credible sources. However, it lacks direct quotes or detailed attributions from other stakeholders, such as employees or industry experts, which could enhance the depth and reliability of the information. The reliance on a single court decision and company statements limits the diversity of sources.

Transparency

The article provides basic context about Hudson's Bay's financial challenges and the court's decision but lacks transparency regarding the methodology behind the reported sales performance or the details of the creditor protection process. The absence of explicit explanations about potential conflicts of interest or the basis for some claims, such as the depth of discounts during liquidation, affects transparency.