What Hudson’s Bay Going Bankrupt Says About Doing Business in Canada?
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Hudson’s Bay—Canada’s very first business and one of its most iconic brands—is filing for bankruptcy. That’s not a clickbait headline. After 350 years in business, this retail giant is closing its doors. It’s not just the end of a company; it’s a loud signal for entrepreneurs and business owners across Canada: things aren’t getting easier here.
For decades, Hudson’s Bay has been a household name. They’ve weathered wars, economic collapses, and major retail revolutions. But what they couldn’t survive? Canada’s modern-day business climate.
In this article, we’re breaking down exactly why even massive corporations like Hudson’s Bay are failing—and why more entrepreneurs are choosing to build their businesses in places like Dubai instead.
A Retail Giant Falls
Let’s rewind for a second.
Hudson’s Bay Company (HBC) was established in 1670. That’s right—350+ years ago. They’ve seen it all, from the fur trade era to modern e-commerce. They adapted to changing times, trends, and customer behaviors. But in the last decade or so, something shifted.
Anyone walking through a Hudson’s Bay store in recent years could tell you the same story: it felt empty. Not just in terms of shelves, but also energy. Fewer customers, less excitement, and more liquidation signs than ever. In fact, there were often more staff than shoppers on the floor.
And now, it’s official: they’re closing.
So what went wrong?
Doing Business in Canada Is Getting Harder
Let’s be real—it’s not just Hudson’s Bay. Small and mid-sized businesses across the country are struggling too. Here’s why:
1. High Taxes
Ask any Canadian business owner about taxes, and you’ll probably get a deep sigh in return. Between federal and provincial taxes, it’s not uncommon to see 30–55% of your income gone before you even touch it.
Think about this: if you make $100,000 a year, you’re likely only taking home around $65,000–$70,000 after taxes. That’s already tough, but when you layer on other costs like corporate taxes, GST/HST, and payroll deductions, the margins get thinner and thinner.
2. High Cost of Labor
Hiring in Canada is expensive. Not only do you need to offer competitive wages, but you’re also paying into pension plans, employment insurance, and other government-mandated benefits. Add in inflation and cost-of-living increases, and suddenly hiring a small team can feel like hiring a full NFL roster.
3. Rising Cost of Goods
Importing goods? Shipping? Fuel? Everything’s more expensive in Canada right now. It’s becoming harder for retailers to offer competitive pricing while still keeping a healthy margin. That’s especially brutal in industries like fashion and home goods—Hudson’s Bay’s bread and butter.
4. Overregulation
Whether it’s business licenses, zoning laws, compliance regulations, or employment standards, running a business in Canada can feel like navigating a maze. There’s paperwork on top of paperwork, which slows everything down and kills momentum.
5. Unstable Urban Centers
Let’s address the elephant in the room: Canada’s city cores are changing—and not for the better. Big cities like Toronto, Vancouver, and Montreal are seeing rising crime rates, homelessness, and drug-related activity. In certain downtown areas, it’s not uncommon to see needles on the ground or public safety concerns that drive shoppers away from malls and stores.
If customers don’t feel safe shopping in your store—they won’t come.
A Sign of the Times: Liquidation Sales & Empty Shelves
Recently, if you walked into a Hudson’s Bay store, it felt more like a clearance warehouse than a luxury department store.
60% off signs everywhere.
Lights off in entire sections of the store.
Loyalty programs cancelled.
Returns and gift card cut-off dates announced.
Entire floors completely empty.
That’s not just a bad sales week. That’s the end.
It’s a brutal reminder that even businesses with government support, long-standing legacy, and nationwide brand recognition are struggling. And if they are? What does that say for new entrepreneurs trying to make it?
Canadians Are Leaving Canada
Here’s another trend that’s impossible to ignore: around 200–300 Canadians are leaving the country every single day. That’s not an exaggeration—that’s data.
Where are they going?
United States
United Arab Emirates (UAE)
European countries with tax advantages
Southeast Asia
The reason? Better quality of life. Lower taxes. More opportunity.
That brings us to Dubai.
Why Dubai Is Becoming the New Hotspot for Entrepreneurs
Let’s be clear—Dubai isn’t perfect, but when you compare it to what’s happening in Canada, it’s easy to see why it’s attracting talent and investment from around the world.
Here are a few reasons why entrepreneurs, freelancers, and even remote workers are flocking to Dubai:
1. 0% Income Tax
Yes, you read that right. In Dubai, you don’t pay personal income tax. So if you make $100,000 in Dubai—you keep $100,000 (minus basic expenses like visa fees and office setup).
It’s one of the most business-friendly tax systems in the world. For many, this is the single biggest reason to make the move.
2. Business-Friendly Environment
Dubai’s government has made it extremely easy to set up and operate a company:
Fast business registration
Easy licensing
Minimal paperwork
Transparent regulations
You don’t feel like the government is out to get you. It actually feels like they want you to succeed.
3. Networking & Community
In Canada, it’s rare to meet business owners casually. In Dubai? It’s the norm.
From networking events to co-working spaces to casual dinners, it’s not uncommon to rub shoulders with 6-, 7-, and 8-figure entrepreneurs—all in one week. If you want to grow fast, this is the environment for it.
4. High-Quality Infrastructure
Forget potholes and delayed projects. Dubai’s roads, airports, internet, and utilities are world-class. You get access to top-tier infrastructure that supports rapid business growth and lifestyle quality.
5. Global Business Hub
Dubai sits right in the middle of the globe. You can fly to Europe, Asia, or Africa in 4–6 hours. It’s also home to hundreds of multinational companies and thousands of startups, making it a powerful base for global operations.
6. Safety & Cleanliness
Dubai is consistently ranked one of the safest cities in the world. You won’t find open drug use on the street, theft is incredibly rare, and there’s a strong rule of law that keeps everyone in check.
7. Luxury Lifestyle at Competitive Prices
Whether it’s housing, cars, food, or entertainment—Dubai offers a luxurious lifestyle without breaking the bank. You can live extremely well at different budget levels and still feel like you’re part of something exciting and high-end.
It’s Not About Escaping Canada—It’s About Growing Somewhere Better
Let’s be clear: This article isn’t an attack on Canada. For many, it’s still home. But for business owners, founders, creators, and investors—it’s becoming a hard place to grow.
If even Canada’s first and longest-running company couldn’t survive… what chance do smaller, newer businesses have?
Dubai offers an alternative—a place where your hard work actually pays off, and where the system is built to support growth, not stifle it.
GenZone Can Help You Make the Move
At GenZone, we’ve helped over 1,000 entrepreneurs and 600+ companies set up shop in Dubai—successfully, legally, and strategically.
Whether you’re:
A freelancer who wants to keep more of what you earn
A business owner looking to scale in a tax-friendly hub
A Canadian tired of feeling stuck
We’re here to walk you through the entire process—from business setup and visa support to banking, office space, and marketing.
Check out our 5-star Google reviews, or better yet, book a free consultation call with our expert team. We’ve been through the journey ourselves, and we know how to help you do it right the first time.
Final Thoughts
The fall of Hudson’s Bay is a wake-up call. If one of Canada’s most iconic businesses can’t survive in today’s climate—what does that mean for everyone else?
Now more than ever, it’s time to look beyond borders. To build your future in a place that actually rewards your hustle.
And if that place happens to be Dubai?
We’ve got your back.
