Hudson’s Bay will lay off more than 8,300 employees — about 89 per cent of its workforce — by Sunday, according to documents published Monday evening, at which point the retailer will have closed all its stores and its liquidation sale will have run its course.
CBC News previously reported that the Canadian brand was expected to wind down its operating stores on June 1, and that the majority of its employees would likely be terminated by then.
Some employees will be kept on staff to help sell any in-store furniture and to shut down the remaining locations. Once the company’s distribution centres close on June 15, an additional 899 employees are expected to be laid off.
The remaining 118 employees will help the company carry out its obligations through the Companies’ Creditors Arrangement Act, the documents said.
Some workers are eligible for severance pay and other wages under the Wage Earner Protection Program Act, the documents noted. The act protects employees during scenarios where they are owed money by an employer undergoing insolvency.
A court order will determine whether Hudson’s Bay employees can apply for benefits under the WEPP. However, the law firm representing those workers says the amount of wages will vary between employees and are not guaranteed.
“Given HBC’s significant amount of secured debt, it is not clear that employees will be able to recover any amounts owing to them directly from HBC,” read a post on the firm’s website.
