Canada’s Historic Hudson’s Bay Company Closes After 355 Years

Beye Escobar experienced mixed emotions as she left the expansive Hudson’s Bay Company store in downtown Ottawa clutching two new bikinis.

While she appreciated the 70 percent discount on her swimwear, she was saddened by the reason behind the sale. On Sunday, just a month after celebrating its 355th anniversary, the Bay announced the permanent closure of its 80 department stores across Canada.

More than a retail chain, the Bay was Canada’s last traditional, full-line department store and a company with deep historical roots. Established in 1670 by Britain as a fur trading enterprise, it was granted a vast territory covering roughly a third of present-day Canada, a land originally inhabited by Indigenous peoples.

“I don’t really understand why it’s closing, but it’s unfortunate because they offered really good products,” Ms. Escobar remarked as she waited outside the store, where once-elegant display windows were now covered with black, yellow, and red signs proclaiming “Entire Store On Sale!”

“I’m not sure where I’ll shop now,” she added.

The company’s closure was primarily driven by overwhelming debt and its recent bankruptcy declaration.

Even before recent geopolitical tensions heightened anti-American sentiment in Canada, the 2008 acquisition of the Bay by Richard A. Baker, a New York-based businessman with extensive shopping mall interests, was met with skepticism among Canadians.

Initially, Mr. Baker fulfilled his promise not to purchase the Bay solely for its real estate, investing in the stores and appointing respected Canadian retailer Bonnie Brooks as president and CEO, which helped revive the company’s declining fortunes.

To compete with the growing online retail market, significant investments were made into the Bay’s e-commerce platform. Part of the revitalization strategy also involved emphasizing the company’s heritage: products like measuring cups and wooden canoes began featuring the iconic green, red, yellow, and indigo stripes of the Bay’s historic “point blankets,” originally used in 18th-century fur trade with Indigenous peoples.

“It felt like a piece of Canada,” said Bryan Higgins, who visited the Ottawa store for a farewell trip. “It was like going to Tim Hortons, another Canadian staple, but instead of grabbing a doughnut, you were buying blankets or slippers. It was uniquely Canadian.”

Mr. Higgins listed a series of Canadian department store closures over the years, including Eatons, Sears Canada, and the recent short-lived entries of Target and Nordstrom.

“But the Bay had its niche and clientele. Where else can people find quality clothing and distinctive linens?” he questioned.

“Unfortunately, online shopping has taken over,” he added.

Jesse Wong, visiting from Calgary to see her son in Ottawa, also expressed regret over the Bay’s closure, though she was taking full advantage of the liquidation sale, leaving the store laden with bags on her fourth visit, hoping to find more bargains before heading home.

Many sections of the five-story store were already vacant or filled with mannequins, boxes of hangers, and various store fixtures—all up for sale.

Ms. Wong explained her repeated visits were driven by new daily arrivals of discounted items.

Midweek, indoor-outdoor rugs marked down by 90 percent were among the most sought-after items, with shoppers frequently struggling to carry them out.

Ashley Johnson, accompanied by a friend with two rugs secured in a stroller alongside her child, was also buying discounted goods. Her purchase—a throw blanket—covered her own stroller’s top.

Although pleased with her deal, Ms. Johnson was critical of Hudson’s Bay, calling it “way too expensive.” She said perfume was the only item worth buying and that she would not miss the store.

Mr. Baker’s attention shifted away from the Bay as he acquired other department stores, notably Saks Fifth Avenue in the U.S. and Europe. After purchasing Neiman Marcus last year, he separated Hudson’s Bay from his other holdings.

Though bankruptcy was filed in March, the company’s decline had been ongoing, accelerating after the pandemic.

Visible signs of neglect were evident to customers, such as broken elevators and escalators in the Ottawa store, requiring shoppers to use a fire escape stairwell. An undated sign on the top floor promised escalator repairs within 90 days.

The upper floors, once home to extensive kitchen, furniture, and linens departments, were mostly empty shelves. One area formerly housing a restaurant was now filled with oversized Christmas decorations.

A bulletin board displaying a “store inventory snapshot” revealed that the Ottawa location generated sales of 31 million Canadian dollars (approximately 22.5 million U.S. dollars) in 2019.

Following the final closure, bankruptcy filings indicated plans to lay off about 8,200 employees without severance pay.

Despite the impending shutdown, employees continued cleaning and tidying, though none agreed to interviews, citing company policy. Some shared they had worked there for decades.

The company’s name and intellectual property were sold to Canadian Tire, a major retailer that has stated no intention to revive the Bay department stores.

A smaller real estate firm in British Columbia acquired the leases for 28 Bay locations and proposed launching a new department store chain, but these plans are pending landlord and judicial approval.

While many Canadians feel nostalgia for Hudson’s Bay, Indigenous communities recall its role in Canada’s colonization and criticize the company for exploiting their lands and unfairly compensating Indigenous trappers who fueled its early success.

Geneviève Cloutier, leaving the store with her daughter who purchased a dressmaker’s form, expressed ambivalence about the store’s legacy.

“I had a love-hate relationship with the Bay,” she said. “Seeing a Bay blanket evokes Canadiana, but it also reminds me of the colonial violence—the darker history behind the company.”