Superior Strategies among suppliers left unpaid as retailer enters creditor protection

THUNDER BAY, ON – March 12, 2025 – Jason Thompson, owner of Superior Strategies Inc., had high hopes when Hudson’s Bay Co. first reached out to his Thunder Bay-based office supplies business in 2023. But instead of securing a major client, he’s now facing more than $80,000 in unpaid invoices, as the iconic Canadian retailer enters creditor protection and delays payments to suppliers.

Mr. Thompson, a member of the Red Rock Indian Band, says the financial strain on his Indigenous-owned business has been significant. Despite repeated assurances from Hudson’s Bay that payment was coming—including as recently as last week—the company has now suspended creditor payments as it navigates a financial crisis.

Thompson tells NetNewsLedger, “I don’t believe HBC acted in good faith any time during our discussions even after our deal was solidified“.

Hudson’s Bay Credit Crisis Hits Local Businesses

Superior Strategies and its Warrior Office division supplied thermal printer rolls to Hudson’s Bay in October 2023. Mr. Thompson fronted $55,000 in supplier costs to fulfill the order, expecting payment of $79,361 (including tax) from the retailer.

“I thought they were going to make good, based on the letter I got,” says Thompson. “It’s had a pretty significant impact on our business.”

Last week, just days after Hudson’s Bay assured Mr. Thompson that a payment plan was in the works, the retailer entered proceedings under the Companies’ Creditors Arrangement Act (CCAA)—a move that freezes payments to vendors while the company restructures.

Hudson’s Bay admitted in court filings that it fell months behind on rent and vendor payments, and sources indicate the company is considering closing up to half of its 80 stores as it seeks financial assistance from landlords.

Thompson says, “It really is up in the air if they have indeed filed for creditor protection there is not much we can do. In the meantime we are putting the pressure on publicly to work with us to clear up that debt”.

A Bitter Irony: Calls for Economic Reconciliation Met with Financial Losses

Mr. Thompson finds deep irony in the timing of Hudson’s Bay’s first outreach. The company contacted him on September 30, 2023—National Day for Truth and Reconciliation.

Given Hudson’s Bay’s historic reliance on Indigenous traders during the fur trade era and its recent moves toward economic reconciliation, he had been optimistic about the partnership.

“The long-standing history that HBC has with Indigenous people—the irony that this all happened on that day,” he said.

In 2022, Hudson’s Bay transferred its historic Winnipeg flagship store to a coalition of 34 Manitoba First Nations in a widely praised gesture of reconciliation.

But now, Indigenous businesses like Superior Strategies are left questioning what that commitment means when financial obligations go unpaid.

What’s Next for Suppliers Like Superior Strategies?

Under the CCAA restructuring process, companies often reduce debts by paying only a fraction of what is owed to unsecured creditors like small businesses.

Many experts estimate that many suppliers in retail insolvencies receive less than 20 cents on the dollar—if anything at all.

Hudson’s Bay spokesperson Tiffany Bourré acknowledged the difficult situation, stating:

“While very difficult, it was necessary for Hudson’s Bay to seek creditor protection. As part of the CCAA process, payments to creditors including vendors are stayed at this time.”

Legal experts note that suppliers can band together to push for fair treatment, but the cost of legal action often outweighs potential recoveries for small businesses.

For Mr. Thompson, the situation is frustrating. His company upheld its end of the deal, but Hudson’s Bay’s financial troubles shifted the burden onto small businesses like his.

“I feel for them, but this is money you’ve taken out of my pocket,” Thompson said. “At the end of the day, all they were doing was passing on their troubles to us.”

Now What?

Thompson asks, “Share our story, let HBC know this is not right, on so many levels even after the history of HBC and indigenous people and entrepreneurs continues today. Also more proactively we look to support our local and more specifically local indigenous businesses. The big boys will squish us when they want, however our intentions as small business owners are not that. We all need the support of our friends, family and Nations”.