The filing for creditor protection by Hudson’s Bay Company on Friday raises immediate questions about the future of its six Greater Toronto Area locations, which collectively anchor major shopping centres throughout the region.
The Ontario Superior Court granted Hudson’s Bay and twelve related entities an initial 10-day stay of proceedings under the Companies’ Creditors Arrangement Act (CCAA). Alvarez & Marsal Canada Inc. will serve as monitor, with Restore Capital providing CAD$16 million in initial financing to maintain operations.
The Toronto locations potentially affected include:
- Queen Street flagship (176 Yonge Street)
- Yorkdale Shopping Centre
- Scarborough Town Centre
- Sherway Gardens
- Fairview Mall
- Centerpoint Mall
The 650,000-square-foot Queen Street flagship at CF Toronto Eaton Centre represents the most significant property affected in the city, serving as a critical anchor for downtown Toronto’s retail corridor where foot traffic has struggled to recover post-pandemic, not to mention the disruptions of the Ontario Line construction and the loss of Pusateri’s as a grocery partner in the PATH-level.
“This is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape,” said Liz Rodbell, President and CEO, citing “post-pandemic shifts” that created “permanent population reduction in downtown stores” among key challenges.
The court’s protection extends to Hudson’s Bay’s real estate joint venture with RioCan Real Estate Investment Trust. The next court hearing is scheduled for March 17, 2025, which will provide further direction on the company’s restructuring efforts.
The CCAA proceedings do not affect Saks Fifth Avenue and Saks OFF 5TH stores in Canada, which operate through a licensing agreement and will continue normal operations during restructuring.
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Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes leadership roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024 and 2025, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.