Canada’s Hudson’s Bay retail chain to terminate more than 8,300 workers by Sunday #CanadaFinance

TORONTO (Reuters) -Canada’s Hudson’s Bay Company plans to lay off 8,347 employees, or 89% of its workforce, by Sunday when it will conclude its liquidation sale and shut all stores, according to documents published late on Monday.

Hudson’s Bay, Canada’s oldest retail chain, has been part of the country’s landscape and identity for 355 years, anchoring malls from coast to coast.

Founded in 1670, the Bay’s brick-and-mortar department stores are following similar retail businesses struggling with declining foot traffic and competing with online commerce.

The layoffs follow rising joblessness in Canada. Unemployment hit 6.9% in April, the highest since November, as U.S. tariffs hit the export-dependent economy.

In March, Hudson’s Bay announced plans to undergo a full liquidation of its stores unless an alternative solution could be found, after initiating restructuring proceedings earlier in the month.

Of the remaining 1,017 employees, 899 are expected to be cut around June 15 when distribution centres are anticipated to close.

The last 118 employees will assist with winding up the company under Canada’s Companies’ Creditors Arrangement Act.

Prior to the liquidation, Hudson’s Bay employed 9,634 people in its 96 stores, four distribution centres and head office, according to the documents.

In 2018, Sears Canada’s closing led to around 12,000 job losses at that retailer.

Hudson’s Bay’s brand assets, including its nationally recognizable coat of arms and stripes were purchased by Canadian Tire Corporation for $30 million, Canadian Tire said this month.

(Reporting by Maiya KeidanEditing by Rod Nickel)