Hudson’s Bay Company (HBC), North America’s oldest retailer, will shut the doors of more than 80 stores across Canada on June 1, bringing an end to a major chapter in the country’s retail history. This mass closure follows a months-long liquidation process that began in late March.
The closures also come with a devastating human cost. According to a court filing submitted on Monday, approximately 8,347 employees — nearly 89 percent of HBC’s Canadian workforce — will be laid off.
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Job Losses and Store Closures: The Hard Numbers
Hudson’s Bay currently employs around 9,400 people in Canada, including about 647 unionized workers. The vast majority will be let go by June 1.
A smaller group of about 1,017 employees — mostly those working at distribution centres — will remain employed briefly until mid-June. However, even those jobs are short-lived: by June 15, an additional 899 terminations are expected when distribution operations are shut down.
Impact on Unionized Workers and Distribution Centres
Unionized workers are among the hardest hit. Unifor Locals 40 and 240 represent around 595 HBC employees at locations in Windsor, Kitchener, Sherway Gardens in Toronto, and at an e-commerce warehouse in Scarborough. Many of these employees will also face job termination under the closure plan.
Workers Demand Accountability and Fair Compensation
Push for Severance and Benefits Amid Liquidation
As the layoffs approach, workers and unions are demanding accountability from HBC. The Canadian Labour Congress (CLC) has publicly criticized the company, urging it to meet its legal and moral obligations.
“We demand that HBC honour its commitments — wages, benefits, and severance must be paid. No backroom deals, no vague promises — workers deserve full transparency,” the CLC stated.
Bonuses for Executives Spark Controversy
Adding fuel to the fire, HBC awarded $3 million in bonuses to executives and managers around the start of the liquidation process. This decision drew sharp criticism from unions and workers alike, many of whom feel abandoned by the company after years of service.
Calls for Legislative Reform: Protecting Workers in Corporate Failures
In response to HBC’s shutdown, Unifor is calling for sweeping changes to Canada’s insolvency laws to better safeguard workers in similar situations.
Proposed Reforms from Unifor Include:
- Raising the cap on the federal Wage Earner Protection Program (WEPP) to allow workers to recover more of their lost income
- Strengthening super-priority status for employee claims in bankruptcies
- Making corporate directors personally liable for unpaid compensation
- Establishing trust-held or government-backed funds to ensure employees receive full entitlements in cases of insolvency
Unifor has organized rallies at multiple affected locations, demanding that HBC protect workers’ wages, pensions, and benefits.
The Path Forward: What Laid-Off Employees Can Expect
HBC stated that eligible former employees can apply for compensation through the Wage Earner Protection Program Act (WEPPA). This program covers certain unpaid wages, severance, and termination pay for employees of insolvent companies. However, the amount is capped and may not fully cover losses for long-term employees.
Billionaire Plans to Acquire Up to 28 Hudson’s Bay Stores for New Department Chain
Conclusion: A Harsh Lesson in Corporate Accountability
The mass layoffs and closure of Hudson’s Bay locations mark more than just the end of a retail era in Canada — they serve as a stark reminder of the vulnerability of workers in corporate bankruptcies.
While liquidation may offer a financial lifeline to struggling corporations, thousands of employees are left behind with uncertainty and unpaid dues. Without urgent reform to insolvency laws and stronger worker protections, more Canadians could find themselves in the same precarious position in the future.