Hudson’s Bay Closures Leave Employees Uncertain While Executives Receive Retention Bonuses

Hudson’s Bay Company (HBC), one of Canada’s oldest and most recognizable retailers, is shutting down all 96 of its stores across the country as part of a court-approved restructuring plan. While the company states the closures are necessary for financial stability, the decision has left thousands of employees without severance pay, raising concerns among workers and labor advocates. At the same time, the company has approved retention bonuses for executives, a move that has drawn both criticism and defense.

Store Closures and Employee Impact

HBC has announced the liquidation of all 96 of its stores, including 80 Hudson’s Bay locations, three Saks Fifth Avenue stores, and 13 Saks Off 5th stores (Associated Press, 2025). The closures affect approximately 9,364 employees, many of whom are long-time staff members.

The company has not offered severance packages to its employees, stating that financial constraints limit its ability to do so. This has been met with disappointment and concern from affected workers. Jody Nesbit, president of Union Local 240, expressed that while the company’s struggles were well known, many employees “didn’t ever think Hudson’s Bay would be gone from Canada” (Associated Press, 2025).

Retention Bonuses for Executives

As part of the restructuring process, HBC has allocated up to $3 million in retention bonuses for 121 managers and executives, with $2.7 million earmarked for upper-level staff (Associated Press, 2025). The company has defended these payments, stating that retaining key leadership during a difficult transition is essential to ensuring an orderly closure and maximizing value for creditors.

However, labor groups have strongly criticized the decision, arguing that employees should be prioritized. The Canadian Labour Congress stated, “No executive should be pocketing bonuses while workers are left without a safety net” (Canadian Labour Congress, 2025).

Uncertain Future for Employees

In addition to severance concerns, employees are worried about the status of their benefits, including disability payments. Lawyer Andrew Hatney, representing multiple HBC workers, has reached out to the company for clarification on whether these payments will continue. In previous company bankruptcies, workers have sometimes lost access to these benefits (Associated Press, 2025).

The Canadian Labour Congress has called on HBC to meet its obligations to workers and has urged the federal government to ensure affected employees can access wage protection programs and employment insurance without unnecessary delays (Canadian Labour Congress, 2025).

Looking Ahead

While the closure of Hudson’s Bay stores marks the end of an era for one of Canada’s most historic retailers, the situation raises broader questions about corporate restructuring, employee protections, and executive compensation. Some argue that companies must take difficult financial steps to survive, while others believe greater safeguards should be in place for workers facing job losses.

As the liquidation process continues, affected employees and industry observers will be closely watching how HBC handles the transition and whether further financial relief or support becomes available.

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