Hudson’s Bay to close all stores, terminate 8,000 staff by June 1

Hudson’s Bay, the oldest company in Canada, will officially close its doors on June 1, marking the end of the business that has been part of Canadian heritage and culture since its founding in 1670.

An Ontario Superior court document released yesterday said that the company will terminate over 8,300 employees, approximately 89 per cent of its current workforce by June 1, when it completes the liquidation of more than 80 stores across the country.

Just under 1,000 workers employees will lose their jobs around June 15, with around 120 people staying on to assist with the final closure.

Employees will not receive severance pay at the time of termination and, according to court documents, a number of employees, including 93 current ones, will lose their long-term disability benefits.

The American-owned beleaguered retailer filed for creditor protection in March with more than $1 billion in debt.

In 2006, U.S. businessman Jerry Zucker bought HBC for US$1.1 billion. Following Zucker’s death two years later, HBC was acquired by NRDC Equity Partners, which also owned the upmarket American department store Lord & Taylor.

With its roots in the 17th century fur trade between Canada’s New France and James and Hudson’s bays to England, the ‘HBC’ established six trading posts between 1668 and 1717 and expanded to open its first department store in Winnipeg in 1881.

First Nations and European trappers were integral in the early years of animal trapping and pelt preparation.

Earlier this month Canadian Tire was successful in its $30-million bid for the store’s intellectual property, including its name, logo and famous four-coloured stripes on a cream background, used on everything from the store’s iconic blankets to scarves and gloves. The agreement is expected be finalized this summer.

Weihong Liu, a British Columbia shopping mall owner, has also signed a deal with Hudson’s Bay. The Chinese’s billionaire’s company called Central Walk will take over 28 store leases in B.C., Alberta and Ontario.

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