A court appearance from Hudson’s Bay is raising doubts over how much money the faltering retailer will have left for employees after liquidation.
The Superior Court of Justice heard arguments Thursday about which law firm should represent employees during proceedings in the retailer’s creditor protection case.
Bay lawyer Elizabeth Pillon urged court to choose the company’s suggested firm because she says it would “streamline” a process that may not leave money to disburse to the workers.
Hudson’s Bay had over 9,300 employees when it filed for creditor protection last month and has many retirees collecting pensions.
In typical insolvency proceedings, secured lenders such as banks are at the head of the line for repayment, with other creditors including employees are much lower down.
Pillon alluded in court to the fact there many not be enough money left for employees when the Bay’s case is finalized.
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