Canada’s oldest retailer, Hudson’s Bay, is preparing to close its final chapter after more than 350 years in business, leaving over 8,000 employees without jobs by early June.
The mass layoffs follow the company’s ongoing liquidation sale, which marks the end of Hudson’s Bay retail operations. A recent court motion filed as part of its creditor protection proceedings revealed that 8,347 employees—89% of its workforce—will be terminated by June 1, with an additional 899 workers losing their jobs around June 15.
At the time of filing for creditor protection in March, Hudson’s Bay employed 9,364 people across its 96 stores, four distribution centers, and corporate offices.
While the company has stated it will pay accrued vacation pay to affected employees, no severance or termination compensation is expected beyond that. This has drawn sharp criticism from Unifor, the union representing many of Hudson’s Bay’s workers, which is demanding the retailer honor its severance obligations and put employees first.
In response to the layoffs, workers held rallies this week at a Scarborough logistics hub and a Windsor store, calling on Hudson’s Bay to provide fair compensation as the business shuts down. Unifor is also urging the federal government to reform insolvency laws and raise the limits of the Wage Earner Protection Program Act (WEPPA)—a safety net for employees impacted by employer bankruptcy.
Currently, WEPPA allows workers to claim up to seven weeks’ worth of insurable earnings, which Unifor argues falls far short of most negotiated severance packages.
“These workers built Hudson’s Bay into a cornerstone of Canadian retail, and now they’re being abandoned with little support,” said Lana Payne, Unifor National President. “This is why we need stronger protections in place.”
The layoffs come alongside major asset sales. Earlier this month, Hudson’s Bay sold its intellectual property, including its iconic multicolored stripes and historic coat of arms, to Canadian Tire for $30 million. In a separate deal, 28 store leases were sold to B.C. based mall owner Ruby Liu, as the company dismantles its once-dominant national footprint.
Following the layoffs, a skeleton crew of just 118 employees, including 50 in retail, 58 in corporate, and 10 in distribution, will remain temporarily to assist with the wind-down of operations.
Founded in 1670, Hudson’s Bay began as a fur trading enterprise and evolved into a retail powerhouse that once anchored malls across Canada. Its collapse marks a significant moment in Canadian business history, as yet another legacy brand succumbs to shifting consumer habits, e-commerce disruption, and mounting financial pressure.
