HUDSON’S BAY RESTRUCTURING LAYOFFS BEGIN WITH 200 CORPORATE ROLES

New details have emerged regarding Hudson’s Bay’s restructuring process in Canada. Starting this Friday, a round of layoffs will impact employees. The announced layoffs will affect 200 corporate employees from the payroll. Hudson’s Bay currently employs over 9,000 people across Canada.

“This is a difficult reality of the restructuring process, and we are committed to treating associates impacted by these changes with respect and support,” a company statement read.

Last week, the affected employees were notified of the layoff. No information has been made public yet about any severance packages associated with this round of cuts.

As background, Hudson’s Bay’s restructuring comes following the more than 300-year-old company’s inability to secure financing for the proposed restructuring it originally sought before the Canadian court. Hudson’s Bay currently owes more than $950 million to its creditors. This has led to a cash crisis at the company that has destabilized its ability to pay suppliers and fund payroll.

As it stands, while the court rejected the original plan, approval was granted in the form of $11 million in debtor-in-possession financing from lenders to help facilitate the liquidation of over 70 store locations. In another statement, Hudson’s Bay singled out the following list of locations, which it intends to spare from the drastic cuts to bring the company back to solvency. These include:

• Downtown Queen St, Toronto
• Yorkdale Shopping Center, Toronto
• Hillcrest Mall, Richmond Hill
• Downtown, Montreal
• Carrefour Laval, Laval
• Pointe-Claire, QC