Few brands are as deeply stitched into Canada’s national identity as Hudson’s Bay Company (HBC). Founded in 1670 – more than 200 years before Confederation – HBC has long been a retail icon. So, when news broke in March 2025 that the company had filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) and planned to liquidate all but six of its stores, the nation took notice.
Citing declining consumer spending, ongoing global trade disruptions, and sluggish downtown recovery post-pandemic for their financial challenges, some observers have called this the closing chapter of a 355-year legacy. But new research suggests there may still be a way forward.
Kersi Antia, Professor of Marketing at Ivey Business School, believes that HBC – and companies in similar circumstances – may yet find a path to survival. His recent study, Buyer–Supplier Relationship Dynamics in Buyers’ Bankruptcy Survival, reveals a critical but often overlooked driver in bankruptcy recovery: how a company manages its relationships with suppliers.
Does it pay to play nice?
Having previously shown that strong supplier relationships can help healthy companies stay financially sound, Antia’s latest study turns to a more urgent and timely question: when a company is already on the brink of collapse, can treating suppliers well still make a difference?
“The majority of marketing research is focused on firms looking to grow and thrive,” Antia said. “But what happens when firms have their backs to a wall – facing an existential threat, like bankruptcy?”
To find out, Antia teamed up with Sudha Mani of Monash Business School and Vivek Astvansh of McGill University’s Desautels Faculty of Management. Together, they conducted a two-part, multimethod study that examined 310 U.S. bankruptcies over a 14-year period and ran a scenario-based experiment with 224 American managers.
In both studies, the researchers explored how bankrupt firms and their suppliers interacted – either accommodatively (working together with flexibility and goodwill) or exploitatively (acting in self-serving, manipulative ways). They also introduced a fresh concept called “velocity” – not just what firms and suppliers do, but also the trend – increasing, level, or declining – of the accommodative and exploitative acts. Their findings reveal a novel factor in bankruptcy recovery – one that could determine whether a company sinks or survives.
Don’t just preserve the bridge – strengthen it
The old adage “don’t burn your bridges” is one every leader knows well. Antia’s research not only reinforces that wisdom – it sharpens it: amid crisis, it’s the strength of those bridges that can determine whether a company survives.
His study reveals that while both the bankrupt firm and its suppliers have influence, it’s the firm’s own actions that carry more weight. Why? Because the firm retains control – shaping the reorganization plan, deciding which contracts to honour, and determining who gets paid and when.
But, with that control comes power. And with power comes risk.
The data is striking. A mere 1 per cent increase in accommodative actions made by the firm – such as offering flexibility or proactively addressing supplier concerns – improves their odds of survival by 39 per cent. In contrast, a 1 per cent uptick in exploitative behaviours – such as stonewalling or squeezing suppliers – cuts survival chances by 33 per cent.
Further, it’s not only about making the right move occasionally. Antia’s study shows that consistency matters.
“We find that persistence, rather than variability, in accommodative behaviours further enhances their positive effect – boosting the likelihood of successful emergence from bankruptcy by an additional 3 per cent, not a trivial amount,” said Antia.
In short: it pays to treat your suppliers well – and it pays even more to keep doing so over time.
Is this the end for HBC?
Given the strength of the study’s findings, Antia believes more companies – Hudson’s Bay Company included – should consider building goodwill with suppliers at every step of the relationship – from courting to bankruptcy. Positive gestures, open communication, and flexibility aren’t simply nice-to-haves; they can be lifelines.
Yet recent developments suggest HBC may not be embracing this approach.
On March 29, HBC’s presiding judge rejected the company’s proposed reorganization plan, citing concerns about potential preferential treatment of certain creditors. To Antia, the ruling signals a troubling disconnect between HBC and its supplier network – and it may be a costly one.
“Unfortunately, the judge’s rejection of their reorganization plan does not bode well for HBC’s future prospects,” he said. “At this point, the likelihood of six stores surviving is fading. Not impossible, but not on a good trajectory.”
For more details on how buyer–supplier dynamics influence bankruptcy outcomes, read Antia’s complete study, Buyer–Supplier Relationship Dynamics in Buyers’ Bankruptcy Survival, in the Journal of Marketing.
