Hudson’s Bay, Canada’s oldest company, may soon permanently close its doors more than 350 years after it was founded. Hudson’s Bay operates 80 stores in Canada, as well as 3 Saks Fifth Avenue stores and 13 Saks Off 5th locations, which it owns through a licensing agreement. It plans to liquidate all of them.
It’s hard to believe that only two Bay stores remain in Manitoba, both located in Winnipeg’s largest malls—St. Vital Centre and CF Polo Park—but this reflects how far department stores have declined. This isn’t just true of Canada; it’s a trend seen worldwide. A few strong luxury brands persist, but generalist middle-income stores have struggled.
Hudson’s Bay Operated Stores in Winnipeg:
- Hudson’s Bay – CF Polo Park, 1485 Portage Ave
- Hudson’s Bay – St. Vital Centre, 1225 St Mary’s Rd
- Saks Off 5th – Outlet Collection Winnipeg, 555 Sterling Lyon Pkwy
The Bay has a line of credit from Cadillac Fairview, owner of CF Polo Park and other top malls across the country. Despite efforts to cut costs, The Bay has not been paying rent. This week, the company sought creditor protection to prevent its assets from being seized by landlords.
For those who haven’t shopped at The Bay in years, this may come as no surprise. In recent years, The Bay attempted to cater to the luxury market, then briefly tried to tap into some Zellers nostalgia. But will this be enough to save HBC? We’ve seen store after store collapse recently, and The Bay is one of the largest department stores still standing.
Some stores that have gone bankrupt have found new life under new Canadian ownership. HMV, Toys “R” Us, Northern Reflections, and a few others have revived. American ownership is not always the right fit for Canadian businesses, now more than ever.
If The Bay ends up closing its locations at Polo Park and St. Vital Centre, expect something dramatic to replace them. The spaces could be subdivided into individual stores, or repurposed for hotels, food halls, and apartments. Even large malls, like Mall of America, have been affected by store closures. Sears’ exit left a massive void, and their long-term lease has left them trying to figure out a solution.
Manitoba has been fortunate in turning around malls that lost major anchors by filling the space with other tenants. Some malls have even converted to box stores. However, malls like the Portage la Prairie Mall, which failed to adapt, eventually closed after losing too many anchors.
As the details of The Bay’s precarious financial situation emerge, it seems unlikely that the company will survive in its current form. It owes $1 billion, and creditor protection will assess what, if anything, can be done to pull the company from this state. Much of the company’s real estate, which held significant value, has been sold off over the years.
It won’t be long before the outcome is clear. If the company does emerge from this crisis, it will undoubtedly be much smaller. Unfortunately, this might mean Winnipeg could lose its Bay stores entirely.
When Will Liquidation Sales start at The Bay stores in Winnipeg?
The Bay is still awaiting court approval to begin its liquidation process. Once approval is granted, the liquidation will start immediately. Expect sales to begin at a 20% discount off the sticker price, with discounts gradually increasing over time.
This has been a guest editorial by John Dobbin.
To read more from John, visit his blog Observations, Reservations, Conversations.
