Hudson’s Bay to terminate 8,000 employees, close all stores by June 1

CITYnews halifax / By Lucas Casaletto

Hudson’s Bay is set to close all its stores and terminate more than 8,000 employees by Sunday.

The company filed a motion on Monday evening detailing that, once the liquidation process is complete, it will eliminate 89 per cent of its workforce by June 1.

The motion states that approximately 899 of the remaining employees are expected to be terminated on or around June 15, while some will stay on to assist with the store closures.

The court documents say up to 200 former and current employees with insured long-term disability plans will continue to receive payments beyond June 15, but the 183 receiving other long-term disability benefits will see their coverage terminated.

Also ending is a package of post-retirement health, dental and life insurance benefits, which about 2,200 retirees received.

Hudson’s Bay filed for creditor protection in March, saying it was having significant trouble paying its bills because of factors including a slow recovery from the COVID-19 pandemic, lower downtown traffic, and the tariff war with the U.S.

Unable to secure funding to keep its 80 stores and 16 others under the Saks banner alive, Hudson’s Bay started liquidating the shops and searching for a way to avoid the complete death of its brands.

Canadian Tire to acquire Hudson’s Bay intellectual property for $30M

Hudson’s Bay has seen stronger-than-anticipated cash flow from its liquidation efforts, with sales reaching $129.5 million between April 19 and May 2—roughly 40 per cent above initial projections. The additional revenue is being directed toward repaying a portion of the retailer’s senior debt obligations.

Canadian Tire has said that it will pay $30 million for intellectual property belonging to the retailer. The sale includes the overarching Hudson’s Bay brand, its iconic, multicoloured stripes motif, its coat of arms and other brand trademarks.

The deal allows products under these names to be sold by Canadian Tire, which owns Sport Chek, Party City, Mark’s and Pro Hockey Life, at 1,700 stores. The sale, which is expected to close this summer, still needs court approval.

The deadline to make an offer for Bay assets came a day ahead of May 1, the last date anyone who wants to take on its leases has to make a binding bid. An April 22 court filing revealed 18 unnamed parties had submitted letters of intent expressing interest in a total of 65 leases.

Hudson’s Bay was founded in 1670 as a fur-trading business that controlled much of the country’s land, economy and Indigenous relations.

With files from The Canadian Press