The End Of An Empire: 5 Shocking Developments That Led To The Bay's 2025 Closure And The Rise Of 'Saks Global'

The Hudson's Bay Company (HBC), North America's oldest corporation with a centuries-long legacy, is undergoing a profound and dramatic transformation that has stunned the retail world as of December 10, 2025. The iconic "The Bay" department store chain, a cornerstone of Canadian retail since 1670, has effectively ended its run, with all stores winding down operations and filing for creditor protection in a move that signals the complete death of the traditional department store model in Canada.

This seismic shift is not a simple bankruptcy, but rather a strategic metamorphosis driven by owner Richard Baker, pivoting the company's focus entirely toward a new entity: Saks Global. The future of the company is no longer in Canadian retail but in luxury e-commerce, international brand acquisition, and the massive repurposing of its valuable real estate portfolio, a strategy that is as aggressive as it is controversial.

The Dramatic End of The Bay and HBC's Corporate Biography

The story of the Hudson's Bay Company is one of unparalleled longevity, beginning as a fur trading post and evolving into a national retail institution. However, the pressures of modern e-commerce, persistent inventory challenges, and a global shift in consumer habits proved too much for the traditional model.

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The most recent and critical events that defined the company's trajectory include:

• 1670: Founded by a Royal Charter from King Charles II of England.
• 2008: Acquired by the U.S. private equity firm NRDC Equity Partners, led by Governor and Executive Chairman Richard Baker.
• 2013: HBC acquires the luxury department store chain Saks Fifth Avenue and its discount counterpart, Saks OFF 5TH.
• 2021-2022: HBC pursues an aggressive digital transformation strategy, investing approximately $130 million into its e-commerce platforms.
• December 2024: The company completes the massive acquisition of Neiman Marcus Group, instantly consolidating a significant portion of the North American luxury retail market under the new corporate umbrella.
• December 2024: 41 staff members are laid off in the Canadian retail division following the split from Saks Fifth Avenue, citing "challenging business" conditions.
• March 2025: Hudson's Bay Company files for creditor protection under the CCAA (Companies' Creditors Arrangement Act) in Canada.
• June 2025: The company ends its centuries-long run as a department store chain in Canada, with the final seven stores, including Canada's last Saks Fifth Avenue location, winding down operations.

The Pivot to 'Saks Global': A New Luxury Conglomerate

The narrative surrounding HBC is now one of duality: the collapse of the Canadian retail arm, The Bay, versus the aggressive expansion of the new holding company, Saks Global. This new entity represents the future vision of the company, shifting its core identity from a department store operator to a global luxury commerce and real estate powerhouse.

Saks Global's strategy is multi-faceted and centers on three main pillars:

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1. Luxury Brand Consolidation and Acquisition

The most significant move was the December 2024 acquisition of the Neiman Marcus Group, which includes Neiman Marcus, Bergdorf Goodman, and other luxury brands. This move instantly positioned Saks Global as a dominant force in the high-end retail sector, leveraging the combined market share of Saks Fifth Avenue and Neiman Marcus. The strategy is to acquire more luxury brands and major U.S. real estate assets, focusing on high-margin, exclusive segments of the market.

2. Digital-First Marketplace Model

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Acknowledging the failure of the traditional brick-and-mortar model, Saks Global is doubling down on a digital-first lifestyle marketplace. The company aims to transform its brands from conventional retailers into modern e-commerce platforms. This strategy includes porting technology from recent acquisitions, such as Gilt, to enhance the digital experience and address long-standing inventory challenges that have weighed on performance.

3. Strategic Real Estate Monetization

The true, long-term value of the former HBC structure always resided in its massive, centrally located real estate portfolio. With the closure of the retail stores, this valuable land is now free for repurposing and monetization. Real Estate Investment Trusts (REITs) like Primaris REIT and RioCan Real Estate Investment Trust have already begun to take control of and announce plans for redeveloping these former HBC locations.

• Primaris REIT: Announced in March 2025 that it is commencing the repurposing of five HBC locations, transforming them into multi-use properties.
• RioCan REIT: Provided an update on its exposure to HBC following the CCAA filing, indicating that its properties will be redeveloped for higher-value uses.

The shift is clear: The company is moving from selling goods to managing luxury brands and developing prime commercial property.

The Unsettled Future of Canadian Luxury Retail and Real Estate

The closure of The Bay and the strategic pivot to Saks Global leaves a significant void in the Canadian retail landscape. The end of the department store era in Canada is now complete, forcing consumers to rely almost entirely on specialized boutiques and international e-commerce platforms for luxury and mid-tier goods.

The path forward for Saks Global is not without its challenges. Despite the high-profile acquisition of Neiman Marcus, the luxury market itself is facing headwinds. Saks Global reported a decline in both revenue and profit for the second quarter, struggling with persistent inventory issues and increased operational costs. The closure of the Saks Fifth Avenue store in Union Square, San Francisco, scheduled for May 2025, further illustrates the difficulties in maintaining a physical luxury footprint even in major U.S. markets.

The success of the new strategy hinges on several critical factors:

1. E-commerce Execution: Can Saks Global successfully integrate the digital operations of Saks Fifth Avenue, Neiman Marcus, and Gilt into a cohesive, high-performance online marketplace?
2. Real Estate Value: Will the repurposing of the former Canadian HBC locations by partners like Primaris and RioCan yield the massive returns necessary to offset the losses from the retail division?
3. Luxury Market Resilience: Can the consolidated luxury group weather a potential global economic downturn, which historically impacts high-end consumer spending?

The transformation of Hudson's Bay Company is a case study in corporate reinvention. It marks the end of a 355-year-old retail legacy and the aggressive birth of a new, asset-heavy, luxury-focused holding company. The coming years will determine if Richard Baker's vision for Saks Global can successfully capitalize on the real estate of the past to fund the luxury e-commerce empire of the future.