Toronto - Arab Canada News

The planned closure of the majority of "Hudson's Bay" stores next June is expected to lead to job losses that exceed the scope of the company's direct employees, including those working in beauty salons, spas, and other service providers located within "Hudson's Bay" stores and its sister companies like "Saks Fifth Avenue" and "Saks Off Fifth".

Additionally, employees directly hired by certain brands to manage cosmetic, jewelry, or boutique departments within these stores may be affected. Companies that rely on "Hudson's Bay" as a primary source of revenue may also have to reduce their staff.

According to a report published by "The Canadian Press," these closures will significantly impact the labor market in the country, with 74 "Hudson's Bay" stores, two "Saks Fifth Avenue" stores, and 13 "Saks Off Fifth" stores closing in June, following several months of inventory clearances. Currently, only six stores remain looking for solutions to stay open.

These developments come after "Hudson's Bay," the oldest company in Canada, received court approval last March to begin liquidating most of its stores due to financial challenges. This includes 80 "Hudson's Bay" stores, three "Saks Fifth Avenue" locations, and 13 "Saks Off Fifth" stores across Canada. However, six stores, including the flagship store in Toronto, will continue to operate thanks to unexpected recent sales.

Background:

"Hudson's Bay" was founded in 1670 and is considered part of Canada's cultural fabric. The company has faced financial challenges due to declining consumer spending, trade tensions between Canada and the United States, and reduced foot traffic in stores after the pandemic. On March 7, 2025, the company filed for creditor protection under the Companies' Creditors Arrangement Act in Canada.