News comes as TDC predicts 100,000 more retail employees to lose jobs by year end
After more than three and a half centuries of shaping Canada’s retail landscape, Hudson’s Bay Company is set to shutter all its remaining stores by June 1, marking the final chapter for the country's oldest department store. The wind-down, prompted by mounting financial distress, will result in the loss of employment for over 8,300 workers, most without severance.
Court documents made public this week confirm that the sweeping closures encompass all 96 stores from coast to coast, as well as distribution centres and the corporate head office. By June 15, an additional 900 employees are expected to be dismissed, leaving only a small contingent behind to oversee final logistics such as removing fixtures and clearing out inventory.
Hudson’s Bay filed for protection under the Companies’ Creditors Arrangement Act (CCAA) on March 7. It now seeks judicial approval to enable its terminated workers to access the federal Wage Earner Protection Program (WEPP), which provides limited financial relief to employees of bankrupt companies. The maximum eligible payout under the program is $8,844.22 per person.
“This is good news in otherwise very difficult circumstances,” said lawyer Susan Ursel in a statement to multiple news outlets. Her firm was appointed by the court to represent HBC’s workers.
For some employees, however, the pain is not limited to the loss of wages. Roughly 189 people receiving long-term disability benefits through a self-funded arrangement will see those payments halted on June 15. While approximately 100 to 200 others covered under insured benefit plans will continue to receive support, earlier cuts have already impacted thousands. Retirees, for instance, lost access to health, dental, and life insurance benefits at the end of April.
In court filings, Michael Culhane, HBC’s chief operating and financial officer, acknowledged the hardship faced by former staff. He said efforts were under way—alongside creditors and employee representatives—to explore the feasibility of a hardship fund. “Other avenues of alleviation are also being considered,” Ms. Ursel noted.
HBC’s collapse unfolds against a turbulent economic backdrop. Analysts at Toronto-Dominion Bank recently warned that Canada may shed as many as 100,000 more jobs by fall, compounding the 75,000 positions already lost this year, half of them in manufacturing. Consumer confidence is weakening, and the unemployment rate—currently hovering near 7 per cent—is projected to rise.
While the Organisation for Economic Co-operation and Development (OECD) forecasts that Canada will narrowly avoid a technical recession in 2025, it expects little to no growth. Structural issues such as lagging productivity, high household debt, and a housing affordability crisis continue to drag on the country’s economic prospects.
The demise of Hudson’s Bay is emblematic of these broader shifts. Once a cornerstone of Canadian retail and a symbol of national heritage, the company has been racing to raise funds to satisfy creditors. Hopes to keep a handful of locations—including its Queen Street flagship in Toronto—open were dashed when it became clear that such efforts hindered plans to monetize assets. The company has since signed tentative deals to sell leases and intellectual property, including a $30-million agreement with Canadian Tire Corp. and another with a company controlled by B.C. billionaire Ruby Liu. Both deals are subject to court approval.
Labour groups have not remained silent. Unifor, the union representing nearly 600 employees at HBC’s e-commerce hub and select Ontario stores, organized rallies this week in Toronto and Windsor. The union is urging the company to honour severance obligations and prioritize worker compensation during the liquidation process.
“This company was built on the backs of working Canadians,” said a Unifor spokesperson. “It is unconscionable that, at the end, those same workers are left with nothing.”
Though Hudson’s Bay will soon vanish from Canada’s retail streetscape, legal proceedings will continue into June. On June 3, the court will hear motions related to the WEPP access and the Canadian Tire transaction, while discussions around a potential hardship fund remain ongoing.
Whether the company's iconic name survives in another guise remains to be seen. But for the thousands now facing unemployment and lost benefits, the end of Hudson’s Bay is less a matter of legacy and more a question of survival in uncertain times.
