Canadian department store chain Hudson’s Bay will lay off 200 corporate employees as part of its ongoing restructuring efforts, with affected staff departing on Friday.
The retailer, which filed for bankruptcy protection in early March due to what it described as ‘an urgent liquidity crisis’ previously stated it was struggling to pay suppliers and meet payroll obligations for its 9,400 employees.
The company has since secured court approval for 16 million Canadian dollars in financing to support store liquidations and business restructuring.
A Hudson’s Bay spokesperson acknowledged the challenges of the restructuring, stating: “This is a difficult reality of the restructuring process, and we are committed to treating associates impacted by these changes with respect and support.”
Employees affected by the layoffs were notified on 28 March, though the company has not yet commented on severance arrangements.
Following its bankruptcy filing, Hudson’s Bay announced plans to liquidate after failing to obtain sufficient funding.
Store closures are now underway, with liquidation sales at 73 Hudson’s Bay stores, two Saks Fifth Avenue locations, and 13 Saks Off 5th stores across Canada.
Customers have until Sunday to redeem Hudson’s Bay gift cards and certificates before they become invalid.
This marks the second round of layoffs at the retailer in just over a year, following a previous workforce reduction tied to an internal restructuring effort that impacted less than 1% of employees.
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