stors to refinance a portion of our credit facilities to improve our liquidity and support our business plan”, Liz Rodbell, Hudson’s Bay president and CEO, explained that declaring bankruptcy was a necessary decision for the company to make.  In a public release, Rodbell stated, “Hudson’s Bay has been a vital retailer to Canadians for generations, and this decision was made with the best interests of our customers, associates and partners in mind. 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.” The Hudson’s Bay CEO added that the threat and realization of a trade war, brought on by Trump’s tariffs, has made it significantly more difficult for the company to operate.  However, some retail experts believe this claim is more of an excuse than a causal factor for the company’s currently shaky standing.  Liza Amlani, the principal and co-founder of Retail Strategy Group, stated, “As far as tariffs are concerned, that is a convenient excuse to take attention away from the fact that the core retail business has not been doing well for some time. The retailer needs serious and thoughtful investments in retail fundamentals to have a chance at survival.” What experts have to say about Hudson Bay Company’s future Hudson Bay Company’s bankruptcy came as a surprise to few in the retail industry.  As Amlani explained to Inside Retail, “The writing was on the wall for HBC’s Canadian operations when Saks Global was formed last year… There has been a lack of investment in the in-store experience for a number of years. From poor visual merchandising standards to broken escalators in the stores, the customer experience has been far from delightful and the stores have become run down and outdated.” Global Data’s managing director Neil Saunders concurred with Amlani.   “The central problem is one of experience. Across most of its stores, Hudson’s Bay has provided the shopper with a sub-par experience, and this has created a situation in which traffic and spending has declined. The chain has basically become far less relevant to Canadian shoppers and even its heritage and iconic status have not been enough to offset this,” Saunders said. “Department stores are expensive to run, and with declining revenue, Hudson’s Bay has not been able to meet all of its financial obligations. Indeed, its response has often been to cut things like staffing, which have further worsened the standards…Hudson’s Bay has been struggling for many years, so bankruptcy is just the latest twist in a long-running saga.” While bankruptcy may bring some relief if the company’s debt can be restructured, Saunders cautioned that Hudson’s Bay needs to invest in its proposition if it hopes to recover.   “It might be possible if Hudson’s Bay closes underperforming stores and focuses on better locations,” Saunders said. “But even then it is a very tall order and would require a vote of confidence in the brand that management has not been willing to make so far.” While tariffs may not have been the primary factor in the company’s present-day challenges, Melissa Minkow, CI&T’s director of retail strategy, noted that they will affect Hudson Bay’s future steps.  “Tariffs are a significant factor for any business that’s already on the rocks when it comes to determining next steps,” Minkow said. “For many brands, the potential for these tariffs to occur is enough of a nail in the coffin for them to move differently. And for all retailers, operating in such an unstable environment is very tough for business. The uncertainty the back and forth on the tariffs is causing doesn’t help anyone.” Time will tell if Hudson’s Bay will be able to tackle incoming tariffs and get back on its feet in the challenging American and Canadian retail landscapes.