Hair Republic owners scramble as Hudson’s Bay liquidation forces them to close up shop

“Everything must go!”

That’s according to the liquidation sale signs that plaster the Hudson’s Bay on Rideau Street. For the owners of Ottawa’s Hair Republic, that includes their salon on the department store’s second floor.

“Everything must go!” That’s according to the liquidation sale signs that plaster the Hudson’s Bay on Rideau Street. For the owners of Ottawa’s Hair Republic, that includes their salon on the department store’s second floor.  Liquidation of all but six Hudson’s Bay stores across Canada, including all four in Ottawa, kicked off last Monday, sending customers flocking for deals and a piece of memorabilia from Canada’s oldest company.  By last Wednesday, the Rideau Street location was cleared out of all its iconic HBC stripes products. Even the green, red, yellow and blue-striped canoe displayed behind one checkout counter was covered in paper “sold” signs.  For Hair Republic co-owner John Nguyen, the liquidation period has been the busiest he’s seen the store since his hair salon opened in 2021.  Now, with Hudson’s Bay shutting down, Hair Republic will be forced to close its two in-store salons in Ottawa and Toronto. It’s a process Nguyen said could take up to 12 weeks, but he added he hasn’t received any official notice from the Hudson’s Bay Company (HBC).   “If we were to close today, it would almost be us breaching our agreement,” Nguyen told OBJ. “So I’m not going to do that until we get an email from their legal team saying, you know, you have 10 weeks to vacate.”  Hair Republic first entered into an agreement with HBC in 2021, when the company reached out to Nguyen and his co-owner and wife Michelle to gauge their interest in collaborating. “At first we thought it was a spam email,” Nguyen told OBJ. “(HBC) spoke to us about the model they’re trying to achieve in the retail space, knowing that retail would have to emerge and be creative. They said let’s partner with smaller brands that command a younger demographic. So they wanted to work with us.” The Hair Republic salon shared a commission on its sales with HBC in exchange for rent and utilities, which Nguyen said significantly mitigated the overhead costs usually incurred when opening a new location.  The couple spent two and a half months renovating a small corner on the Rideau Street side of the building, next to the escalators. They installed natural wood finishes, hair wash stations, mirrors and styling chairs, as well as seating for a waiting area.  It was a small space, much different from their other standalone locations on Bank Street and in the ByWard Market, but for the couple, it was an opportunity to reach markets outside of Ottawa.  “Honestly, when we opened this, we really tried to foster a relationship with Hudson’s Bay because we had a grand vision to expand nationally,” said Nguyen.  The first stop was Toronto. Nguyen said Hudson’s Bay allowed them to choose from a selection of its GTA stores to set up the first Hair Republic salon outside of Ottawa. They eventually settled on Sherway Gardens, launching that location in 2023.  Now, as Hudson's Bay prepares to close its doors, it’s the Toronto salon that he and Michelle believe poses the greatest challenge.  “Luckily for the Ottawa location, we’re able to bring our staff to our pre-existing locations here, to essentially help them and their clients. The Clarence location (in the ByWard Market) being relatively close, it’s not too much of a task or a hassle for us to find them a new home,” Michelle told OBJ.  Not so for the Toronto salon, which doesn’t have a second standalone location in the city to fall back on. “We’re very actively looking for solutions,” Michelle said. “Being just the one year in, we’re really starting to build that momentum for our staff and clientele. So it’s crucial that we find a new home for them quickly.”

According to Nguyen, they’re considering three possible avenues: negotiate with mall owner Cadillac Fairview for a direct lease; buy an existing salon that’s exiting the market; or find and build out a new space. “Some of the factors we have to take into account are business continuity, so there’s no interruption in employment, and cost,” said Nguyen. “We were only in operation for 12 months, so there’s a lot of sunk costs already. We spent close to $250,000 between investments and loans that we're not going to recoup. We’ll recoup 50 to 70 per cent, but the rest is all rough-ins; plumbing and electrical stuff that we can’t take with us.” In addition to finding the right solution, Nguyen said securing permits from the City of Toronto is a much longer process than in Ottawa, further complicating the matter.  While the circumstances pose challenges, neither Nguyen nor Michelle are deterred from their long-term goals for the company, though their plans have been delayed.  “Three weeks ago, we were actually planning on franchising this year,” said Nguyen, a plan that he said could be delayed by at least six months.  Prior to the news of Hudson’s Bay’s liquidation, Nguyen said they’d started discussing the possibility of opening a school to train new stylists, especially as the industry faces a skilled labour shortage.  Michelle, a hair stylist by trade, said she’d always dreamed of starting her own salon. In the years since launching Hair Republic in 2015, both Michelle and Nguyen said they’ve become invested in educating stylists and advocating for industry-wide improvements.  “We have a model that we want to be able to duplicate and sell to other operators,” he said. “I find 90 per cent of salons out there lack the understanding of salon economics. After 25 years, if they want to walk away, they don’t have proper exit strategies or succession planning and they sell for nothing. I want to be able to see stylists become owners and owners become good operators. We’re essentially fostering the new generations coming into our establishments.” For now, the couple said they’ll be spending the next few months “putting out fires” as they deal with an uncertain situation.  “As entrepreneurs, we wear all the hats,” said Michelle. “In this case, for the next little while, we might be wearing hard hats.”