What the loss of the Bay means for Vancouver

Hudson's Bay, Canada's oldest company, started its liquidation this week.

"The Bay building is almost 100 years old, it's Class A heritage, and I think it's an incredibly important building to the downtown," said Vancouver Coun. Mike Klassen.

While the Bay initially filed for creditor protection with the intention of restructuring, the majority of its stores are now shutting down and have begun clearing their inventories.

Liquidation is expected to wrap up by June 15, with the company vacating the stores by June 30. Only six stores have been spared so far — three in Ontario and three in Quebec.

An important part of Vancouver's downtown core

Klassen's biggest concern is that the building will be boarded up.

"Even if it took four or five years to figure out what we do with it, it would be devastating to this part of the city," he said. "I think that retaining this heritage and adding new life to the building will be very important to our city."

The councillor says he views it as an opportunity to make the building part of a transportation, cultural, and economic hub in the city's downtown core. 

WATCH | How people feel about the Bay's liquidation: 

Shoppers lament demise of Hudson's Bay as liquidation begins

7 days ago

Duration 0:54

We asked people outside a Hudson's Bay store in Victoria for their thoughts as the department store begins liquidation sales at all but six of its locations across Canada. 'I feel nostalgic that it's shutting down,' said one woman, adding she bought one of the department store's iconic blankets last week.

While it's uncertain what will happen to it, he says the plan for another major and nearby part of the downtown, the Granville Street Entertainment District, will be unveiled later this year.

"Granville Street has struggled ever since they turned it into a mall in the 1970s," said Klassen. "I still think it has a very bright future, but we have to do the work to make sure that it's sustainable, and that it attracts businesses and customers and remains as an important part of the vibrant cultural history of this city."

An impact on small businesses

Michael King, an associate professor and Lansdowne chair in finance at the Gustavson School of Business at the University of Victoria, told CBC News that liquidations of the Bay across the country will be felt by retailers, business districts and malls.

"[The Bay] was an anchor tenant in many malls, so when there's a liquidation in the mall, that can really have knock-on effects to the stores around," said King.

"It's going to hurt sales at the smaller stores in that mall, and then later there's not going to be that anchor tenant to attract foot traffic."

King says there are 80 stores under the Hudson's Bay brand and more under the Saks brands that HBC owns and operates. He says this is large in terms of Canadian liquidations, comparing it to Sears in 2017.

With the Bay in liquidation one year after Nordstrom closed its stores nationwide, retail analyst David Ian Gray says businesses will suffer.

"It's not like it's a desolate area, but we're missing two very big pieces of real estate that will be vacant right now," he said.

WATCH | Best deals yet to come in Hudson's Bay liquidation sale: 

Hudson's Bay begins liquidation, but best deals yet to come

4 days ago

Duration 2:15

Facing over a billion dollars of debt, the Hudson’s Bay Company has begun its liquidation process. An Ontario court gave the centuries-old retailer its blessing to sell off remaining stock at almost all its 96 stores. But as Liam Britten reports, bargain hunters might need to wait to find the best deals.

He says the absence will hurt adjacent businesses, as tourists visit locations but avoid areas where there's nothing for a couple of blocks.

"Smaller businesses tend to rely on the big drivers," he said. "If you're a little sandwich shop sort of tucked in there along Nordstrom and the Bay, you're not going to be doing quite so well."