Canada’s longest-standing company, The Hudson’s Bay Company (HBC), filed for bankruptcy officially on March 7. The retailer went to court on Monday to seek approval for liquidation, and was approved to liquidate all but six of the 80 locations across Canada by the Ontario Superior Court on Friday. Ahead of the closures, Canadians have been snapping up their iconic striped blankets, and any striped product for that matter, resulting in some extreme mark-ups online.
Every single HBC Stripes product completely sold out online almost immediately after the company filed for bankruptcy, ranging from socks to blankets to even reusable lunch bags. Visits to local stores confirmed that retail locations in the GTA are sold out, apart from the odd items here and there. The stash accumulated by heritage-hungry people has made its way to eBay, and other resale platforms, sold for exorbitant prices.
This 108x-100-inch blanket that retailed for $440 on sale in-person and online is being sold here for $5,750 without specified shipping. In a similar vein, another seller priced their 60-x86-inch blanket for $2,500, normally retailing for just $280. Just when we thought this markup was only on blankets, another seller priced their striped toque at $795 on eBay — similar hats are currently priced (though out of stock) on the HBC website for $45.
Despite the rush from Canadians to acquire a piece of the company’s history, the iconic striped blankets carry a different meaning for some.
Created in 1670 following a royal issue from King Charles II, exclusive trading rights were granted to the entirety of the Hudson Bay watershed. Spanning 3.2 million square miles, Canada’s fur trade was set up and operated throughout the established area.
During this time, fur traders opted to use a striping system to determine the size of their blankets. This iconography continues today, where we see green, red, yellow and indigo stripes adorning products. While this pattern is seen widespread as the official motif of Hudson’s Bay, the stripes serve as a tainted part of history for many.
For Indigenous communities, the influx of other fur traders negatively affected their communities. Traditional ways of life were disrupted, conflicts arose over land and resources, and most importantly, the price of fur pelts majorly diminished as colonials set new trade values. There is also a known history of European traders deliberately spreading smallpox and other infectious diseases to Indigenous populations through the trade of contaminated blankets, sometimes killing entire communities.
The Hudson’s Bay Company started donating all of the proceeds from the sale of their striped blankets to Indigenous organizations in 2022, noting on their website that the blanket has been “called many things throughout its history: an essential trade item, an enduring emblem of Canada, a carrier of disease, and a symbol of colonialism.”
In court filings, The Hudson’s Bay cited a multitude of factors leading to their demise, including customer spending habits attributed to inflation and economic uncertainty, post-pandemic retail struggle, and increased competition from companies like Amazon and fast fashion labels.
The company has filed for creditor protection, owing $950 million to close to 2,000 creditors. Some of these creditors are household names, including Nike Canada, Adidas Canada and Ralph Lauren.
Of the retailer’s 80 Bay stores, three Saks Fifth Avenue stores and 13 Saks Off 5th stores, six will be saved from liquidation for now: a flagship location on Yonge Street in Toronto, one in Yorkdale Mall and another in Hillcrest Mall in Richmond Hill, as well as three in Quebec.
All remaining locations will begin liquidation on Monday, March 24, with any sales finishing by June 15.
Some analysts speculate that the company could suffer a similar fate to the likes of Sears and Zellers, being purchased and relaunched as an online retailer. In the meantime, The Hudson’s Bay is hoping to reach a deal with landlords and other key stakeholders to minimise operations costs.
