Listen to the article
As part of its restructuring, Canadian department store Hudson’s Bay Co. will eliminate 200 corporate roles effective Friday.
“This is a difficult reality of the restructuring process, and we are committed to treating associates impacted by these changes with respect and support,” a company spokesperson said in a statement.
Impacted personnel were notified on March 28. The company did not respond to questions regarding severance packages for impacted workers.
Hudson’s Bay filed for the equivalent of bankruptcy protection in early March, citing “an urgent liquidity crisis.” At the time of filing, the retailer said it was unable to pay suppliers and would be unable to fund its payroll “within a matter of days” for the 9,400 people who work at its three banners.
The court approved 16 million Canadian dollars (about $11 million at the time) in debtor-in-possession financing from lenders, which the company said would go toward the liquidation of some of its stores and restructuring the business.
About a week after filing, Hudson’s Bay said it planned to liquidate after failing to secure sufficient financing.
Liquidation sales have started at 73 Hudson’s Bay stores, as well as two Saks Fifth Avenue and 13 Saks Off 5th locations in Canada, per the spokesperson. The last day that shoppers can use their outstanding Hudson’s Bay gift cards and gift certificates is Sunday.
Hudson’s Bay went through a round of layoffs about a year ago as part of an organizational “re-alignment” that impacted less than 1% of its workforce.
