Context: The Confederation Report
Host: Steven R. Martins
Language: English
Part I: Financial Troubles for Company that Pre-dates Canada (0:05-2:35)
Hudson’s Bay Company faces insolvency with nearly $1 billion in debt, blaming retail struggles and past real estate shifts.
Part II: Liquidation and Disappearance (2:37-5:07)
With Canada’s oldest business facing imminent closure, we are witnessing the end of a retail era, while nearly 10,000 employees are left in limbo.
Part III: A Christian View of Economics (5:10-11:23)
The collapse of Hudson’s Bay Company serves as a warning that economic stability depends on stewardship, justice, and alignment with God’s moral order, rather than speculation, financial manipulation, or centralized control.
Did You Know? (11:26-12:33)
French competition forced the Hudson’s Bay Company to shift from coastal trading to inland expansion, with explorers like Anthony Henday documenting First Nations cultures and shaping future trade strategies.
Recommended Reading (12:36-13:48)
This week’s recommended reading, Hudson Bay: Life on the Canadian Frontier by R.M. Ballantyne, vividly captures the adventure, survival, and commerce of the fur trade era, offering an immersive look at the challenges and interdependence between European traders and Indigenous peoples.
Transcript:
It’s Week 13 of 2025, and this is The Confederation Report, a weekly analysis of Canadian news and culture from a biblical worldview. I’m Steven R. Martins, and each week, we break down the headlines, challenge secular narratives, and apply Scripture to the issues that matter. Because Christ is Lord—over Canada, over culture, over all of life.
Part I: Financial Troubles for Company that Pre-dates Canada (0:05-2:35)
Hudson’s Bay Company, one of Canada’s most historic retailers, has been reported to be in serious financial distress, with court filings revealing nearly $1 billion in debt. The company has sought creditor protection as it attempts to restructure, owing a total of $950 million to nearly 2,000 secured and unsecured creditors. Among those affected are major brands such as Adidas Canada, Estée Lauder, L’Oréal Canada, and Nike Canada, along with municipalities and government agencies. The extent of its financial obligations to employees, however, remains unclear.
While the scale of Hudson’s Bay’s insolvency is substantial, experts say it is hardly surprising. The retail sector has struggled since the COVID-19 pandemic, grappling with declining foot traffic and broader economic pressures. Dina Kovacevic, editor-in-chief of Insolvency Insider Canada, noted that unsecured creditors—including employees and suppliers—will likely recover only a fraction of what they are owed. For those who lose their jobs in the process, severance payouts may be minimal.
Although the company’s CEO has attributed its financial woes to pandemic-related disruptions and ongoing trade tensions with the U.S., analysts argue that Hudson’s Bay’s decline began long before that. The company’s 2008 acquisition by NRDC Equity Partners shifted its focus from retail operations to real estate investments, leading to years of underinvestment in its stores. The consequences have become increasingly evident, with understaffed sales floors, malfunctioning escalators, and heating and cooling failures forcing temporary closures.
As the retailer fights to stay afloat, employees remain uncertain about their future. Many fear they will bear the brunt of the restructuring, with one worker summing up the sentiment: “In corporate failures, the worker always comes out last.”
Part II: Liquidation and Disappearance (2:37-5:07)
Canada’s longest continuously operating business may soon cease to exist. In a Toronto courtroom, company lawyers have sought judicial approval to begin liquidating assets, with reports indicating that Hudson’s Bay Company (HBC) could shut down entirely by late May or early June. Despite efforts to stay afloat, the retailer has been unable to secure the necessary financing, burdened by more than $1 billion in debt while managing to arrange only $23 million for temporary operations. The company needs $430 million to cover immediate expenses and an additional $724 million to address mortgage obligations. Without a financial lifeline, its 80 remaining stores could begin closing in the coming weeks.
Founded over 350 years ago as a fur trading enterprise, Hudson’s Bay Company played a pivotal role in shaping Canada’s economic history. Once the country’s largest company, and third-largest landowner, it expanded into industries such as mining, oil, gas, and retail. At its peak, it was a dominant force in Canadian commerce. However, shifting consumer habits, an overemphasis on real estate over retail strategy, and growing competition from online shopping, big-box retailers, and outlet malls gradually eroded its success. Experts note that Hudson’s Bay Company’s downfall mirrors that of other once-iconic Canadian department stores, such as Eaton’s and Sears, which failed to adapt to a rapidly changing market.
For many Canadians, Hudson’s Bay was more than just a store—it was a retail institution, deeply woven into family traditions, particularly during the holiday season. Generations of shoppers recall visiting its flagship locations for household essentials, seasonal gifts, and the festive window displays that became a hallmark of its brand. Yet, as consumer preferences shift toward convenience and specialized shopping experiences, the traditional department store model has struggled to survive.
The imminent closure of Hudson’s Bay Company marks the end of an era. Beyond the loss of a historic brand, nearly 10,000 employees now face an uncertain future, left to navigate the fallout of another corporate giant unable to withstand the pressures of modern retail.
Part III: A Christian View of Economics (5:10-11:23)
As we reflect on the closing of a Canadian company giant, one with such rich history that predates Canada’s confederation, we may be asking ourselves, this is all interesting but what does a Christian worldview have to do with economics? The answer is found in the question itself, most particularly the word “worldview.” It logically follows that if Christ is Lord over everything, and I mean everything, then He is Lord over economics as well. And indeed, Scripture speaks extensively on economic matters, because the economic aspect is a part of man’s multi-faceted functions. Here then, in brief, is a Christian view of economics:
A distinctly Christian economic perspective, that is to say, a perspective rooted in biblical presuppositions, recognizes that the economy is not an autonomous, self-sustaining system but functions within a broader moral and social order. At its core is the principle of stewardship—the responsible and efficient management of resources in service to God and neighbor. Yet, stewardship does not exist in isolation; it is bound by higher moral principles such as justice, love, and social harmony. Economic activity, therefore, cannot be reduced to mere profit-seeking or state-controlled redistribution, but rather must be aligned with God’s moral order.
To elaborate, the Eighth Commandment’s prohibition against theft provides a foundational principle for economic justice. Theft is not merely a legal infraction but a distortion of the proper relationship between individuals and their resources, disrupting social harmony. Economic policies must uphold the integrity of property, contracts, and voluntary exchange. Any system—whether socialist, corporatist, or crony-capitalist—that institutionalizes theft under the guise of economic management violates this principle and erodes social trust.
Furthermore, economic life cannot be reduced to mechanisms of power—whether through state coercion or financial manipulation. Instead, it must be understood as part of God’s creational order, designed for mutual provision and the wise use of resources. A properly ordered economy fosters productivity and cooperation without elevating efficiency as the highest good. True economic flourishing occurs when frugality, diligence, and generosity are exercised in service to love and justice, rather than subordinated to greed or bureaucratic control.
Thus, a Christian view of economics rejects both radical individualism and collectivism. Instead, it affirms that economic life thrives when each sphere of society—those being the family, church, business, and civil government—operates according to its God-ordained role. When economic activity remains properly oriented within this framework, it serves as a means of blessing rather than a means of exploitation. True prosperity is not merely material accumulation, but the fruit of a just and moral order where resources are wisely managed under God’s law.
In relation to the Hudson’s Bay Company, the downfall of this Canadian heavyweight illustrates the consequences of poor stewardship and economic irresponsibility. Once a pioneering enterprise, the Hudson’s Bay Company abandoned its foundational role in trade and retail excellence, shifting its focus toward speculative real estate ventures. Rather than reinvesting in its stores and customer experience, it prioritized financial maneuvering—a shortsighted strategy that ultimately led to declining relevance and insolvency. This collapse underscores how economic institutions falter when they forsake their fundamental purpose: serving real human needs.
Moreover, Hudson’s Bay’s failure highlights the dangers of economic centralization and detachment from local markets. Large corporations often prioritize efficiency at the expense of justice, reducing employees and customers to mere numbers rather than recognizing them as participants in an economic order that should promote mutual provision and sustainability. When businesses cease to function as responsible stewards—misallocating resources, failing to adapt, and ignoring their foundational purpose—they do not simply suffer financial losses; they signal a deeper disorder in economic life.
We thus need to see the demise of the Hudson’s Bay Company as a warning: monetary prosperity is not sustained through speculation or bureaucratic control, but through wise management, ethical service, and adherence to God’s moral order. Institutions that neglect these principles will find themselves undermining the trust and stability necessary for long-term economic flourishing.
In the end, the lesson is this: when economic life aligns with God’s moral law, it brings stability and prosperity. Put another way, when man’s economic functioning is in harmony with the normative laws of the economic aspect, and not in contravention of other interrelated normative laws established by God in His creational order, the result will be sustainability and flourishment. But when businesses prioritize short-term profit over justice, financial manipulation over stewardship, and centralized control over local responsibility, they ultimately collapse—leaving behind economic instability, social fragmentation, and broken trust. Whether we manage our own finances, or that of our businesses or non-profits, it would be wise to learn from the errors of those who fail, as well as bearing in mind the truth that in this fallen world, nothing “earthly” or materially lasts forever.
Did You Know? (11:26-12:33)
The Hudson’s Bay Company, founded in the late seventeenth century, initially conducted its fur trade from coastal forts along Hudson Bay, relying on the Cree and Assiniboine as middlemen to bring furs from the interior. These Indigenous traders controlled the flow of European goods, charging significant markups to other First Nations. The company was reluctant to establish inland posts, preferring to let the trade come to them—until French competition forced a change in strategy.
In 1690–1691, the company sent young Henry Kelsey inland to explore the prairies, but his journey did not lead to expansion. Only in 1754, feeling pressure from the French, did the English send Anthony Henday to convince First Nations to shift their trade from French posts to Hudson Bay. Henday’s journal, more detailed than Kelsey’s, documented the cultures of the interior and the buffalo hunt—making him the first Englishman to record such observations. His journey marked a turning point in the Hudson’s Bay Company’s approach to inland trade, setting the stage for further expansion.
Recommended Reading (12:36-13:48)
This week’s recommended reading is Hudson Bay: Life on the Canadian Frontier by R.M. Ballantyne, a captivating account of adventure, survival, and commerce set against the vast and unforgiving landscapes of northern Canada. Ballantyne transports readers to the height of the fur trade era, where European traders and indigenous peoples navigated both the perils of nature and the complexities of cultural exchange. With his signature attention to historical detail, he vividly recounts the daily struggles and triumphs of those who braved the wilderness in pursuit of fortune and exploration. His descriptions of the harsh climate, the wildlife, and the sheer resilience required to survive make for an immersive and exhilarating read.
More than just a tale of adventure, Hudson Bay offers a thoughtful reflection on the interdependence between the traders and the native communities, shedding light on both cooperation and conflict in the early days of Canada’s frontier. Ballantyne’s engaging storytelling and insightful commentary provide a compelling glimpse into a pivotal period in history, making this book an essential read for anyone fascinated by Canada’s past, the fur trade, or tales of human endurance in the face of nature’s formidable challenges.
Closing Words
Thanks for listening to The Confederation Report, this podcast is brought to you by the Cántaro Institute. Visit our website at cantaroinstitute.org for more information. For books to read on worldview, philosophy, and theology, visit our store at cantaroinstitute.store
We’ll meet again next week.
Documentation and Additional Reading:
CBC News (Jenna Benchetrit)
Hudson’s Bay Company nearly $1B in debt, with court filings painting dire financial portrait
Edmonton Journal (Lorne Gunter)
Lorne Gunter: Hard to imagine a Canada without the Bay