Hudson’s Bay files for creditor protection, exploring strategic options

Did Hudson’s Bay declare bankruptcy?

Hudson’s Bay, Canada’s oldest retailer, has filed for creditor protection with the Ontario Superior Court of Justice.

“While very difficult, this is a necessary step to strengthen our foundation and ensure that we remain a significant part of Canada’s retail landscape, despite the sector-wide challenges that have forced other retailers to exit the market,” CEO Liz Rodbell said in a news release on March 7.

“Now more than ever, it is critical that Canadian businesses are protected and positioned to succeed.”

As part of the filing, the Toronto-based retailer said it was exploring several strategic options to strengthen its business — claiming that it’s committed to saving as many jobs as possible.

The bombshell announcement comes just months after Hudson’s Bay became a stand-alone business in December.

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Is Hudson’s Bay planning to close stores?

According to The Canadian Press, the company is mulling the closure of 40 locations.

However, a person familiar with the matter claims that the number could change.

Hudson’s Bay has approximately 80 stores across Canada.

How does bankruptcy affect current employees?

Bankruptcies in Canada often lead to layoffs. Additionally, terms of employment (i.e. salaries, benefits, etc.) could change.

LEARN MORE
• Changes to your job in Ontario: Employee rights
• What Albertans need to know about changes to their job
• Job changes in British Columbia: What employees need to know

However, the specific effects depend on whether your employer is shutting down permanently or restructuring so that it can continue to operate.

Major employers slashing staff

The decision to seek creditor protection comes shortly after Hudson’s Bay cut jobs to kick off 2025.

Other big names, including MLSE, Disney, Autodesk, Starbucks, Mohawk College, JPMorgan, Chevron, Vale, Meta, Canada Post, Workday, ADM, Amazon, Shopify, Stripe, BP, Microsoft, and Wayfair, have also pulled out the axe as they navigate challenging economic conditions.

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• ‘We lost our agility’: Estée Lauder planning to slash up to 7,000 jobs
• Canada’s immigration department slashing workforce by 25%
• Where are layoffs happening in Canada?

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.