At Hudson’s Bay Co.’s distribution centre in Toronto’s east end, order processor Kevin Grell has been working harder than usual, all while fearing for his livelihood. “Everybody is worried. They’re worried, they’re scared,” he says, referring to the uncertainty facing him and over 9,300 employees as the company struggles.
Hudson’s Bay, which was recently granted protection from creditors under the Companies’ Creditors Arrangement Act, has started liquidation sales at all but six of its stores across the country, as well as its Saks Fifth Avenue and Saks Off 5th stores in Canada. These clearance sales will begin on Monday and continue until mid-June.
While employees continue to be paid for now, there is no guarantee of severance pay, raising significant concerns among workers. Thousands of layoffs are expected, and legal experts warn that these workers may not qualify for immediate government protection.
Union representatives and employees are deeply worried about the future, particularly in a challenging economic environment marked by tariffs, rising costs, and economic instability. Many of the workers, some with decades of service, are facing the harsh reality of unemployment.
Hudson’s Bay, however, assures that employees’ pensions are fully funded, despite the company’s ongoing struggles. The situation remains tense as employees worry about the looming layoffs and what lies ahead.