North America’s Oldest Commercial Enterprise

The Hudson’s Bay Company (HBC) was established on May 2, 1670, with a royal charter from King Charles II, granting it a fur trading monopoly over Rupert’s Land, a vast area around Hudson Bay. Initially focused on trading beaver pelts and other furs with Indigenous peoples, HBC set up trading posts along the coasts of Hudson Bay, James Bay, and the Arctic Ocean. These posts were not only commercial hubs but also played a key role in the exploration and colonization of Canada, shaping the region’s economic and political landscape. The company faced conflicts, notably with French forces, as seen in raids led by Pierre Le Moyne d’Iberville, which disrupted its posts along James Bay. Its dominance continued until 1869, when it relinquished control of Rupert’s Land to Canada via the Deed of Surrender, authorized by the Rupert’s Land Act 1868 Hudson’s Bay Company Wikipedia History.

Transition to Retail and Expansion

As the fur trade declined in the late 19th century, HBC diversified into retail, transforming its trading posts into shops and opening department stores in Canadian cities, starting with Winnipeg in 1881. This shift marked its evolution into a major retailer, acquiring companies like Zellers in 1978 and converting Simpsons to Bay stores in 1991 Hudson’s Bay Company The Canadian Encyclopedia. In the 21st century, HBC expanded through acquisitions, such as Saks, Inc. for US$2.9 billion in 2013 and Galeria Kaufhof for US$3.2 billion in 2015, though these moves later contributed to financial strain Hudson’s Bay Company Wikipedia History.

Recent Financial Struggles and Bankruptcy

Recent years brought significant challenges for HBC, exacerbated by the COVID-19 pandemic, inflation, and trade tensions, particularly with the U.S. under tariff policies Retail Dive. On March 7, 2025, it filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), unable to secure financing and facing delays in supplier payments, with a reported net loss of $329.7 million for the year ended January 31, 2025 Canada’s Hudson’s Bay Crisis NPR Bankruptcy. Court documents revealed $1.1 billion in outstanding secured debt, and the company warned it was days away from being unable to meet payroll, risking lease defaults and store closures Hudson’s Bay Creditor Protection The Globe and Mail. By March 14, 2025, after 355 years, HBC announced the liquidation of all 96 Canadian locations, affecting over 9,400 employees, with sales starting soon after and closures by June 2025 Hudson’s Bay Shoppers CBC News Bankruptcy.

Unexpected Detail: Global Reach and Separation

An unexpected aspect is that while the Canadian arm is closing, the company’s U.S. operations, including Saks Fifth Avenue and Neiman Marcus under Saks Global, are not part of the bankruptcy, having been separated in December 2024. This separation, finalized for $2.7 billion, means the Hudson’s Bay brand may persist internationally, despite its Canadian retail demise Hudson’s Bay Company Wikipedia History.

Survey Note: Comprehensive Analysis of Hudson’s Bay Company’s History and Current Crisis

The Hudson’s Bay Company (HBC), a cornerstone of Canadian retail history, traces its origins to May 2, 1670, when it received a royal charter from King Charles II of England. This charter granted HBC a commercial monopoly over Rupert’s Land, a vast territory encompassing much of present-day northern and western Canada, centered around Hudson Bay. Initially focused on fur trading, HBC became a pivotal player in the exploration and colonization of Canada, establishing trading posts along the coasts of Hudson Bay, James Bay, and the Arctic Ocean. Its interactions with Indigenous peoples, trading beaver pelts and other furs, were central to its early operations, as detailed in historical accounts Untold Story Hudson’s Bay Company Canadian Geographic. The company’s role extended beyond commerce, acting as a de facto government in Rupert’s Land until it relinquished control to Canada in 1869 via the Deed of Surrender, authorized by the Rupert’s Land Act 1868 Hudson’s Bay Company Wikipedia History.

Throughout the 18th and 19th centuries, HBC faced conflicts, notably with French forces, as seen in raids led by Pierre Le Moyne d’Iberville, which disrupted its posts along James Bay Hudson’s Bay Company Wikipedia History. By the late 1800s, the demand for beaver pelts declined, prompting HBC to diversify. In 1869, it traded some land for farmland in western Canada, and by the early 1900s, it transformed its trading posts into shops and built department stores in Canadian cities, marking its shift to retail Kids Britannica. This evolution continued through the 20th century with significant acquisitions, such as Zellers in 1978 and the conversion of Simpsons to Bay stores in 1991 Hudson’s Bay Company Wikipedia History.

The company’s financial trajectory in the 21st century included both expansion and challenges. In 2006, Jerry Zucker acquired HBC for US$1.1 billion, and in 2008, it was sold to NRDC Equity Partners for the same amount Hudson’s Bay Company Wikipedia History. Major acquisitions followed, including Saks, Inc. for US$2.9 billion in 2013, resulting in a $124.2 million net loss in Q3 2013, and Galeria Kaufhof and Galeria Inno for US$3.2 billion in 2015, later sold in 2019 for US$1.5 billion Hudson’s Bay Company Wikipedia History. In 2019, it sold Lord & Taylor to Le Tote for $75 million cash plus CA$33.2 million, retaining a 25% equity stake and paying CA$77 million/year rent for three years Hudson’s Bay Company Wikipedia History. By March 2020, HBC was taken private by Richard Baker and shareholders, delisted from the Toronto Stock Exchange Hudson’s Bay Company Wikipedia History. In 2024, it acquired Neiman Marcus Group for $2.65 billion, finalized in December for $2.7 billion, forming Saks Global, which includes Saks Fifth Avenue and Bergdorf Goodman Hudson’s Bay Company Wikipedia History.

However, financial difficulties mounted, driven by the COVID-19 pandemic, inflation, and trade tensions, particularly with the U.S. under tariff policies Retail Dive. On March 7, 2025, HBC, specifically its Canadian operations under the Hudson’s Bay department store chain, filed for creditor protection under the CCAA, unable to secure financing and facing delays in supplier payments Canada’s Hudson’s Bay Crisis NPR Bankruptcy. Court documents revealed a $329.7 million net loss for the year ended January 31, 2025, with $1.1 billion in outstanding secured debt obligations Hudson’s Bay Creditor Protection The Globe and Mail. The company warned it was days away from being unable to meet payroll, risking lease defaults and store closures Hudson’s Bay Company Wikipedia History.

By March 14, 2025, after 355 years, Hudson’s Bay announced the liquidation of all 80 Hudson’s Bay, 3 Saks Fifth Avenue, and 13 Saks OFF 5TH locations in Canada, totaling 96 stores, with liquidation sales starting the following week and closures expected by June 15, 2025 Hudson’s Bay Shoppers CBC News Bankruptcy. This decision affects over 9,400 employees, with potential layoffs and store closures, marking the end of its 355-year presence in Canada, though its U.S. operations, including Saks Global, remain unaffected Financial Post.

This development underscores the challenges faced by traditional department stores in a digital, post-pandemic world, with inflation and changing consumer habits contributing to the crisis. The liquidation process, pending court approval, includes inventory and asset sales, with efforts to engage stakeholders like landlords for potential restructuring, though no deal had materialized by March 17, 2025 Retail Dive. This closure represents a significant chapter in Canadian retail history, ending a legacy that began with fur trading and evolved into a national institution, now facing its final days.

Table: Key Financial and Operational Milestones

This table encapsulates the financial and operational evolution, highlighting the scale of recent losses leading to bankruptcy.

Key Citations

• Hudson’s Bay Company Wikipedia History
• Untold Story Hudson’s Bay Company Canadian Geographic
• Hudson’s Bay Company The Canadian Encyclopedia
• Canada’s Hudson’s Bay Crisis NPR Bankruptcy
• Hudson’s Bay Shoppers CBC News Bankruptcy
• Hudson’s Bay Creditor Protection The Globe and Mail
• Retail Dive Hudson’s Bay Bankruptcy Analysis
• Financial Post Hudson’s Bay Bankruptcy News
• Kids Britannica Hudson’s Bay Company Overview