Hair Republic consolidating Ottawa operations after Hudson's Bay closures, pivots to partnership model

Ottawa-founded Hair Republic is consolidating its local operations this month, closing its ByWard Market salon and moving all local team members to its flagship location on Bank Street.

The move comes more than a year after the company was forced to vacate two Hudson's Bay locations when HBC began liquidation efforts across Canada in spring 2025. Hair Republic had operated salons in the Rideau Centre in Ottawa and Sherway Gardens in Toronto. Co-owner John Nguyen said the dual closure within one week was "hard, mentally and financially."

"When we open stores that are corporate-owned, there's a lot of capital being deployed on our end," he said. "So it was challenging when we were not able to recoup our initial investments, let alone all the social equity that we kind of put into those two stores."

Rather than pursue traditional franchising, which carries negative stigma in the salon sector, Hair Republic is now forming partnerships with existing salon operators through joint venture and management agreements. The company has already partnered with a salon in Etobicoke and converted a former Toni & Guy franchise location in downtown Toronto. Another partnership is planned for later this year in Burlington.

Nguyen said the new model addresses real market conditions. "Given that we are in an economic downturn still, there are a lot of operators that are losing ground and not renewing their leases," he said. "They're looking for an exit strategy. They need help."

The approach also responds to labour challenges affecting the industry. Stylists who previously struck out independently are increasingly returning to salons, and Nguyen said his partnership model provides a more flexible middle ground than corporate franchises while helping stores address staffing shortages.