Hudson’s Bay Co. will eliminate more than 8,300 jobs by Sunday as the storied Canadian retailer completes its final liquidation and permanently closes all stores across the country, according to documents published Monday.
The cuts represent 89% of the company’s workforce and mark the end of the 355-year-old retailer that has been a fixture in Canadian shopping malls for centuries.
Hudson’s Bay filed for creditor protection in March after accumulating nearly $1 billion in debt. The company had employed more than 9,300 workers before beginning liquidation proceedings.
The company will eliminate 8,347 positions by June 1 as liquidation sales conclude. Distribution facilities will shed an additional 899 workers by mid-June, with 118 staff remaining to oversee the shutdown process under Canada’s Companies’ Creditors Arrangement Act.
Most workers will not receive severance pay, according to company memos obtained by Canadian media. When companies enter creditor protection, employee compensation claims are subordinated to secured debt holders like banks and property owners.
The company has set aside up to $3 million in retention bonuses for 94 store managers and 27 head office staff, including $1.08 million for 10 senior leaders.
Laid-off workers can apply for Employment Insurance and the federal Wage Earner Protection Program, which offers compensation up to $8,844.22 per employee for unpaid wages and termination pay.
Read: Hudson’s Bay to Shutter Remaining Stores as Liquidation Begins
Founded as a fur trading company in 1670, Hudson’s Bay became synonymous with Canadian retail through its distinctive multicolored stripe design. Canadian Tire purchased the company’s intellectual property, including its iconic stripes and logos, for about $30 million.
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