Hudson’s Bay Company will permanently close all of its stores by June 1 and terminate more than 8,000 employees.
According to a document included in a motion filed in court on Monday evening, 89 per cent of the company’s workforce will be laid off as the retailer completes its liquidation process.
Another 899 employees are expected to be terminated around June 15, with a small number staying on temporarily to assist with final closures.
Approximately 200 former and current employees on insured long-term disability plans will continue receiving payments beyond June 15.
However, the 183 individuals receiving other long-term disability benefits will lose their coverage.
A package of post-retirement health, dental, and life insurance benefits for about 2,200 retirees will also be terminated.
The company, which filed for creditor protection in March, cited decreased foot traffic in urban shopping centres, post-pandemic economic challenges and US tariffs as reasons for its financial collapse.
Hudson’s Bay had been seeking financing to avoid shutting down its 80 Hudson’s Bay stores and 16 Saks OFF 5TH locations across Canada.
With no rescue secured, the company began liquidating assets in an attempt to repay creditors.
Despite the shutdown, liquidation sales have generated stronger-than-expected results.
Between April 19 and May 2, sales reached $129.5 million, about 40 per cent higher than initial projections.
The company says the additional revenue is being directed toward repaying senior debt.
Meanwhile, Canadian Tire Corporation has agreed to purchase Hudson’s Bay’s intellectual property for $30 million.
The deal includes the Hudson’s Bay brand name, its signature multicoloured stripes, coat of arms, and other trademarks.
Subject to court approval, Canadian Tire will gain the rights to sell Hudson’s Bay-branded products at its network of more than 1,700 stores, including Sport Chek, Mark’s, Pro Hockey Life and Party City.
The sale is expected to close this summer.
An April 22 court filing showed that 18 unnamed parties had submitted letters of intent expressing interest in 65 store leases.
Weihong Liu, a Vancouver billionaire from China who has been linked to Chinese Communist Party-affiliated groups, bought 28 leases.
The deadline to submit binding offers for any remaining assets was set for April 30, one day before the deadline to assume or reject store leases.
Hudson’s Bay was founded in 1670, making it the oldest company in both Canada and North America.
It began as a fur-trading enterprise that once controlled vast swaths of land and played a dominant role in shaping Canada’s early economy and Indigenous relations.
The closure of Hudson’s Bay marks the end of a 354-year-old institution that once stood as a pillar of Canadian retail.