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have indicated The Bay could close half of its 80 Canadian stores as it looks to stem mounting losses.

For now, lenders will provide interim debtor-in-possession financing — including a $16-million advance — to secure Hudson’s Bay’s operations in the lead up to a “comeback motion” hearing, the company said in a .

In from a March 7 hearing, Ontario Superior Court Justice Peter J. Osborne notes a sense of melancholy around Hudson’s Bay. The retailer is the oldest company in North America, founded in 1670.

More than 350 years later, it is insolvent and was granted creditor protection last week.

Gift cards remain valid

Court documents reveal Hudson’s Bay will honour outstanding gift cards valued at about $20 million. Hudson’s Bay will also maintain an existing relationship with third-party gift card providers who sell and activate gift cards.

Rewards program paused

Hudson’s Bay has suspended its Hudson’s Bay Rewards rewards program until further notice, however, according to its CCAA application. A web page associated with the program displayed an as of Wednesday.

The move impacts more than eight million customers who had points worth more than $58 million as of Feb. 1.

Financial troubles revealed in court documents

As of Jan. 1, 2025, Hudson’s Bay had approximately $3 million in cash on hand, court documents reveal. The company owed $315 million in trade payables and $422 million in pre-filing secured debt in addition to $724.4 million in mortgage obligations, for an approximate total secured debt obligation of $1.1294 billion.

“Hudson’s Bay today is facing an imminent liquidity crisis,” Osborne said, according to a transcript of a March 10 court hearing. “It has not paid rent at several of its leased stores and a number of its trade creditors have not been paid.”

Working with investors

In an earlier news release, Liz Rodbell, Hudson’s Bay president and CEO, said the company has been working with potential investors to improve financial liquidity and support a revamped business plan.

The company has blamed a U.S.-Canada trade war, a weak Canadian dollar, and changing consumer habits, such as strained household budgets, for its current financial struggles.

Hudson’s Bay is “exploring strategic alternatives and engaging stakeholders” to help preserve and strengthen its business, the company noted.

How many stores could close?

Marvin Ryder, associate professor of marketing at McMaster University, said he expects to see some Hudson’s Bay stores hold liquidation sales in preparation for closure.

Ryder doesn’t think The Bay will need to close half of its 80 stores but suggested the company could survive in the short term by closing about 20 locations. Hudson’s Bay could shutter some under-performing stores in the spring and summer and regroup for an expected surge in demand in the fall, for example.

“I suspect we’ll see some restructuring in time for back-to-school,” said Ryder.

But overall, as a department store selling general merchandise, Ryder doesn’t see a bright future for The Bay over the next decade.

“It’s a symptom that general stores don’t do well,” said Ryder, referencing a consumer trend toward specialty stores. “Will they still be here in 2030? I’d be hard-pressed to give you a guarantee,” he added.