The Rise and Fall of the Hudson’s Bay Company

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The closing of the Hudson’s Bay Company has been met with mixed emotions. Many feel the weight of its historical role in colonization and its impact on Indigenous communities. The company’s fur trading activities and establishment of trading posts brought Europeans into contact with Indigenous populations, leading to the spread of diseases and disrupting traditional ways of life.

Founded in 1670, the company’s story actually begins in the 1660s, when French explorers Pierre-Esprit Radisson and Médard des Groseilliers tried to convince colonial officials in New France to support an expedition to the Hudson Bay region. Rejected by the French, they turned to England, where they found backing from Prince Rupert, cousin of King Charles II.

In 1670, King Charles granted the newly formed “Company of Adventurers of England Trading into Hudson’s Bay” an immense royal charter. This document gave HBC exclusive rights to all the land whose rivers drained into Hudson Bay—an area named Rupert’s Land after the prince. This land covered about 40% of present-day Canada, including all of what is now Saskatchewan.

From the outset, HBC was not just a company; it acted as a sovereign power, controlling land, establishing laws, building forts, and negotiating (or ignoring) terms with Indigenous nations. Over the next two centuries, it played a central role in the colonization of western Canada.

The company relied entirely on Indigenous peoples for its survival and success in the fur trade. Indigenous trappers, traders, and guides provided furs and helped Europeans navigate the unfamiliar and often harsh geography. In exchange, HBC offered goods such as metal tools, guns, beads, and cloth.

While these trade networks were mutually beneficial at times, they also brought significant disruption. The arrival of Europeans introduced new diseases, altered traditional economies, and created divisions among Indigenous groups. Over time, competition between the Hudson’s Bay Company and the rival North West Company led to over-trapping and increased tensions in the region.

In 1821, the two companies merged under the HBC name, giving it a near-monopoly over the fur trade in Canada.

By the late 1800s, the fur trade was in decline, and European expansion westward was accelerating. In 1869, the HBC agreed to sell Rupert’s Land to the new Canadian government. While the company retained some land and urban lots for profit, it no longer controlled the territory politically.

HBC then reinvented itself as a retailer. As railways spread and prairie towns grew, the company opened general stores and later full-fledged department stores. Throughout the 20th century, Hudson’s Bay became a household name in Canadian cities and towns, eventually expanding into real estate, logistics, and luxury brands.

Despite its legacy, the Hudson’s Bay Company struggled to adapt to the rapid changes of the 21st-century economy. Online competition, rising debt, shifting consumer habits, and the hollowing out of downtown shopping areas all took their toll.

In March 2025, after years of financial turbulence, HBC filed for creditor protection. The company cited declining sales, inflation pressures, and continued fallout from the COVID-19 pandemic as factors. An Ontario court approved the liquidation of 74 Hudson’s Bay stores, along with all Canadian Saks Off 5th locations and several Saks Fifth Avenue outlets.

Six flagship stores, including those in Toronto and Montreal, remained open temporarily after a brief surge in sales, but in April 2025, HBC confirmed they would also close by June 15.

Today, the Hudson’s Bay Company leaves behind a legacy that is both foundational and fraught. It played a critical role in the development of Canada’s geography, economy, and national identity, yet it also participated in and profited from colonization and the displacement of Indigenous peoples.