More than 8,000 Hudson Bay employees will lose their jobs by June 1, according to a recent court motion filed by the company.
In the motion filed on May 26, Hudson Bay indicated that 89 percent of its workforce, or 8,347 employees, would no longer be working at its retail stores as of June 1.
It also said that it will keep 1,017 employees, including those working at distribution centres, until June 15. On or around that date, 899 employees will lose their jobs.
“The balance of the retained employees will assist with wind up functions for the Company through the [Companies’ Creditors Arrangement Act] Proceedings,” the court documents said.
Those include about 58 corporate employees, 50 retail employees, and 10 distribution centre employees.
Hudson Bay employees will be paid accrued vacation pay, according to the motion.
Related Stories
However, the company said it does not expect to pay out any other termination or severance pay.
In the motion, the company said it was asking the court for a Wage Earner Protection Program (WEPP) Act declaration for eligible employees.
The program offers some payments to employees who have been terminated when their employer files for bankruptcy or is subject to receivership.
Unifor has called on the company to “honour its obligations to employees by protecting wages, pensions, and benefits.”
The union organized a “solidarity” rally on May 27 in the Toronto area.
Local 40 and Local 240 represent 595 Hudson Bay employees, the company said.
The union said it also wanted to see changes for federal insolvency laws, including raising the cap on the WEPP, strengthening super-priority status for worker’s claims, and establishing trust-held or federally guaranteed funds for workers.
Under the WEPP program, Hudson Bay employees may be able to receive up to $8,844.22.
Earlier this month, a court granted an extension of court protection to Hudson Bay under the Companies’ Creditors Arrangement Act. The protection was extended to July 31, rather than end on May 15.
The company has also agreed to sell 28 of its store leases to a B.C. mall owner, Ruby Liu, who said she plans to turn the B.C., Alberta, and Ontario locations into “a new modern department store.”
Hudson Bay has also sold ownership of its name, its famed stripes motif, its coat of arms, and several of its brands to Canadian Tire for $30 million.
Hudson’s Bay filed for creditor protection in March, saying it was struggling to pay the nearly $1 billion owed to landlords, vendors, and suppliers. As a result, the company put it assets and leases up for sale.
The Canadian Press contributed to this article.
