Hudson’s Bay Company, Canada’s oldest retailer, has filed for creditor protection, a move similar to Chapter 11 bankruptcy protection in the United States, as it struggles with economic headwinds.
The company, which dates back to 1670 and fur-trading across the Arctic, has historical presence in Arctic Alaska, and largely built Fort Yukon as a major fur-trading post.
Hudson Bay cited factors such as softer consumer spending, US-Canada trade tensions, and a decline in downtown store traffic all putting pressure on the business.
“While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape, despite the sector-wide challenges that have forced other retailers to exit the market,” Liz Rodbell, president and CEO of Hudson’s Bay, said in a news release.
The filing, made in the Ontario Superior Court of Justice on Friday, allows the company time to restructure its operations while exploring ways it might maintain financial stability. While the process could lead to the sale or closure of some stores, HBC has expressed a commitment to preserving jobs and its retail presence where possible.
Beyond its modern-day challenges, Hudson’s Bay Co. has a deep-rooted history in North America, particularly in Alaska. The company played a crucial role in the fur trade, which was a driving force behind the early European exploration and settlement of the continent. In the 19th century, HBC expanded its reach into Russian America (present-day Alaska), establishing trading posts and fostering commerce in the region.
One of HBC’s most known endeavors in Alaska was the establishment of Fort Yukon in 1847.
Located near the confluence of the Yukon and Porcupine Rivers, Fort Yukon served as a major fur trading post, allowing the company to tap into lucrative trade with Indigenous trappers and traders.
This outpost became a focal point of commerce in the Interior and remained an integral part of HBC’s operations until the Alaska Purchase in 1867, when the territory was transferred from Russian to US control.
Despite eventually withdrawing from Alaska, Hudson’s Bay Co.’s influence on the Interior’s economic development remains significant. The company’s fur trading helped shape Alaska’s early economy.
The venerable Hudson’s Bay Company in financial difficulty. Sad but not surprising.
The closest HBC posts to Juneau were up the Stikine River at Telegraph Creek and Atlin, BC. There might have been a post for a bit in Wrangell, Alaska.
The rise and fall of The Hudson’s Bay empire is intricately detailed in ‘The Company’ by Stephen Brown, copyright 2021.
Ermine was wearing out on the monarchs shoulders.