Hudson Bay Company to dismiss over 9,000 staff members by mid-June
Canadian Retail Pioneer Hudson's Bay Files for Creditor Protection, Plans Massive Store Closures and Layoffs
In a dramatic shift, Canada's iconic retailer Hudson's Bay Company has filed for creditor protection and announced plans to close all of its stores, including Hudson's Bay and Saks Fifth Avenue locations in Canada. The company's recently disclosed filings also revealed that more than 9,000 employees will be out of work by mid-June.
The decision to liquidate its business and assets comes after a string of financial difficulties. These included delays in paying suppliers and an inability to secure financing. The company initially planned to keep some stores open but has since decided to close all locations.
Hudson's Bay has been successful in selling its intellectual property to Canadian Tire for $21 million. The retailer has also leased several properties to a commercial real estate developer, although the amount involved remains undisclosed.
As part of the restructuring process, Hudson's Bay will shutter all its stores, with a few exceptions. The company will continue to operate until June 15, with some stores staying open until that date. By June 1, the company expects to dismiss about 8,347 employees, accounting for nearly 90% of its workforce. A smaller team will remain to manage the wind-down of the business.
The decision to liquidate stores and reduce the workforce was communicated to the court, emphasizing that "no going concern sale opportunity is available." Hudson's Bay added that it had become necessary to significantly reduce headcount and align the workforce with the wind-down of stores and distribution centers.
Laid-off employees will receive accrued vacation pay, but no termination or severance payments. Health and other benefits are expected to end for most workers as of June 15. Hudson's Bay's intellectual property and brand assets will be transferred to Canadian Tire upon court approval.
Founded in 1670, Hudson's Bay Company is one of the oldest retail chains in North America. The company also operated Saks Fifth Avenue and Saks Off 5th stores in Canada. Its bankruptcy filing and subsequent store closures mark a significant turning point for the longstanding retailer.
References:[1] "Hudson's Bay to Wind Down Business and Liquidate Assets" (Date unavailable)[2] "Hudson's Bay to Close all Stores in Canada" (Date unavailable)[3] "Hudson's Bay Sells Intellectual Property to Canadian Tire" (Date unavailable)[4] "Hudson's Bay Files for Creditor Protection" (Date unavailable)[5] "Hudson's Bay Struggles with Financing Challenges" (Date unavailable)
- The financial struggles of Hudson's Bay Company, one of North America's oldest retail chains, have led to the sale of its intellectual property to Canadian Tire for $21 million and widespread store closures.
- The company's bankruptcy filing and subsequent store closures have also resulted in the loss of jobs for more than 9,000 employees, with 8,347 expected to be dismissed by mid-June.
- In an attempt to restructure, Hudson's Bay has sought financing but was unsuccessful, leading to the decision to liquidate its business and assets across multiple industries, including retail and finance.
