HUDSON’S BAY COLLAPSE – 8,000 JOBS LOST!
On the brink of a monumental shift, Hudson’s Bay Company, an icon of Canadian retail history, closes its doors, heralding an uncertain future for thousands of employees.
At a Glance
- Hudson’s Bay Company is closing all 80 stores and laying off 8,347 employees by June 1, 2023.
- The company is overburdened with over $1 billion in debt and has filed for creditor protection.
- Employees will not receive severance pay, while pensions and health benefits are axed.
- A deal to sell intellectual property to Canadian Tire for $30 million is underway, preserving the brand’s legacy.
The End of an Era
Canada’s retail landscape is undergoing a seismic change as Hudson’s Bay Company, a beacon since 1670, plans to shut down all its stores by June 1, 2023. This closure affects 8,347 employees, marking a significant shift in the retail sector. Citing declining foot traffic and digital competition, the company is now filing for creditor protection under the Companies’ Creditors Arrangement Act (CCAA).
This dramatic closure doesn’t just affect employees; it leaves a lasting scar on Canadian retail. Hudson’s Bay once operated 96 stores nationally and was a cornerstone in various communities. Yet, due to an overwhelming $1 billion debt, the storied retailer cannot sustain its operations despite its rich history.
Impact on Employees
The shuttering of Hudson’s Bay stores is more than just a corporate restructuring; it’s a personal disaster for thousands of employees left without severance pay and with sharply curtailed benefits. “It is really sad. I don’t have any words to comfort anyone,” lamented Hazel Harris, an employee at the Hudson’s Bay e-commerce distribution center for seven years, “What do I do now? How am I going to keep the roof over my head?”
In a bid for relief, Hudson’s Bay has applied for the federal Wage Earner Protection Program (WEPP), albeit its capacity to cover owed amounts given its debts is uncertain. Meanwhile, the employee advocacy group Unifor is pushing hard for justice, demanding full severance and benefit preservation.
A Future with Canadian Tire
In a move to keep the Hudson’s Bay legacy flickering, Canadian Tire steps in, buying its intellectual property, including the esteemed logo and signature stripes, for $30 million. This acquisition may ensure the brand’s essence survives, but for now, tangible retail presence is fading.
With 28 store leases being reassigned in Ontario, Alberta, and British Columbia, there is hope some retail continuance persists. “Canada’s Hudson’s Bay retail chain to terminate more than 8,300 workers by Sunday,” reported Maiya Keidan on the economic impact of this upheaval, underscoring the broader downturn.
As Canada’s unemployment rate climbs to 6.9% in part from such economic shifts, Hudson’s Bay’s closure frustratingly echoes past retail collapses, reminding many of the 12,000 jobs lost when Sears Canada shuttered in 2018. As Hudson’s Bay exits major retailing, its corporate entity endures in a subdued form, winding up affairs via the CCAA process.
