More than 8,300 employees will lose their jobs by June 1 as a major department store chain shuts down operations across Canada. The mass layoff represents around 89 per cent of its workforce, coinciding with the end of its liquidation sales and the closure of all retail locations.
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Documents released on May 27 confirmed that a small number of staff from Hudson's Bay (the retailer in question) will remain temporarily to sell leftover in-store furniture and facilitate the final closure of sites. A further 899 layoffs are expected once the company's distribution centres shut down on June 15. Just 118 employees will be retained to oversee the wind-down process through court proceedings under the Companies' Creditors Arrangement Act.
Some workers may qualify for compensation through the federal Wage Earner Protection Program Act, which safeguards unpaid wages in cases of employer insolvency. However, eligibility and payment amounts vary, and legal representatives have cautioned that recovery is uncertain due to the company's extensive secured debt.
'Given HBC's significant amount of secured debt, it is not clear that employees will be able to recover any amounts owing to them directly,' stated a post from the law firm supporting the affected workers.
The closure marks the final chapter for one of Canada's oldest retail institutions, ending a legacy that once spanned high streets across the country. Despite earlier resistance from employees over proposed changes to commissions and the lack of severance packages, the retailer has now confirmed its full exit from the market.
This development reflects ongoing turbulence in the retail sector, where legacy chains continue to struggle amid shifting consumer habits and economic headwinds.
Source: www.cbc.ca