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Hudson’s Bay in recent weeks has managed to sell its intellectual property to retailer Canadian Tire, which also bid on several of its leases, for $21 million. Then about two dozen store leases went to a commercial real estate developer for an undisclosed amount. But as it shutters its entire fleet, more than 9,000 of its employees will be out of work by June 15, according to court documents.
The iconic Canadian department store, which also ran Saks Fifth Avenue and Saks Off 5th in the country, filed for the equivalent of bankruptcy in March. At that point Hudson’s Bay employed about 9,364 people across 96 stores, four distribution centers and its headquarters, with seven employees living in the U.S.
By June 1, the company will have laid off about 8,347 of its employees, or about 90% of its workforce, plus another 900 or so two weeks later when its distribution centers are expected to close.
After June 15, the department store company will continue to employ a few people to help with the wind-down of its business, including about 50 retail employees, 58 corporate employees and 10 distribution center employees, per the filing.
The process of trying to sell its business and its leases made it clear “that no going concern sale opportunity is available, and as a result, it was necessary for the Company to make the difficult decision to significantly reduce employee headcounts to align with the winddown of the Liquidation Sale and rolling closure of store locations and required employee positions,” the company told the court Monday.
Hudson’s Bay Co. said it would liquidate almost immediately after its bankruptcy filing, even eventually giving up on six namesake stores plus a Saks Fifth Avenue store that had been previously excluded from those plans,
Laid-off workers will get accrued vacation pay but no other termination or severance payments. As of June 15 most health and other benefits will also be terminated, according to court documents.