Retail giant Hudson's Bay decides to close seven stores, among them being the last Saks 5th Avenue location in Canada.
In a significant move, Hudson's Bay Company (HBC) has announced plans to wind down six additional namesake stores and one Saks Fifth Avenue store, with liquidation sales beginning on Friday. The closures are expected to be completed by June 15.
The decision comes after HBC filed for the equivalent of Chapter 11 bankruptcy last month. The company, under the leadership of Richard Baker, has been criticised for not investing in stores or people, with Mark Cohen, former CEO of Sears Canada in the early 2000s, describing the company as an ATM machine.
HBC's court filings flagged the Trump administration tariff policy and a tough consumer environment as contributors to its struggles. However, Cohen believes that the company's troubles are primarily due to mismanagement.
The closure of Hudson's Bay Co. will leave a big gap in the market, especially for brands that built their wholesale strategy around Hudson's Bay. The Bay is the only store in Canada that many brands selling to a department store sell to. In some cases, The Bay is the only department store in a city in Canada and a beauty destination for many customers.
The comparison between Richard Baker and Eddie Lampert, the financier widely seen as responsible for the long-running demise of Sears, suggests potential issues for the management and future of Saks Global, as HBC bought Neiman Marcus Group last year, forming Saks Global.
Amlani, who did not specify his identity in the reports, mentions that the disappearance of Hudson's Bay Co. will leave both brands and consumers adrift in many areas. The company initially did not include these six Hudson's Bay stores and the Saks Fifth Avenue store in its liquidation plans.
The closure of Hudson's Bay Co. marks the end of a centuries-long era for Canadians. Richard Baker, the U.S. real estate mogul who runs the parent company HBC, has been compared to Eddie Lampert in terms of management style. Baker is the governor, executive chairman, and CEO of Hudson's Bay Company and heads the private equity firm NRDC Equity Partners, which owned Hudson's Bay from 2008 to 2025.
The HBC's approach has wider implications for Saks Global. The company's struggles are more due to mismanagement than losing customers or getting defeated by rivals. As the stores begin their liquidation sales, the future of these iconic brands remains uncertain.
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