Latest news with #Saks-branded
Yahoo
03-06-2025
- Business
- Yahoo
Court OK's Hudson's Bay selling trademarks, like iconic stripes, to Canadian Tire
Hudson's Bay Co. will live on in some fashion, and what form it takes will be solely up to Canadian Tire. On Tuesday, the beleaguered department store got court approval to sell its intellectual property, including its iconic multicoloured stripes motif, to Canadian Tire for $30 million. Bankrupt Hudson's Bay Co. will use the cash to pay some of its debts before the 355-year-old retailer disappears entirely. On Sunday, the company wrapped up liquidation sales and closed its remaining 96 Bay and Saks-branded stores to the public. As part of the $30-million deal, Canadian Tire will take ownership of not only the Hudson's Bay stripes, but also its company names and other trademarks, such as its historic coat of arms symbol. The big box retailer will also get all of the Bay's customer data, including personal information, and domain names for its websites, court documents have shown. The deal excludes the storied company's art, artifacts and archives, as well as any of its more than 9,000 employees, most of whom have already been laid March, indebted HBC was granted creditor protection by Ontario Superior Court, putting its assets up for sale. Seventeen parties submitted bids for the retailer's intellectual property. "The Canadian Tire transaction, among other things, provides for the highest purchase price of any bid received … and therefore provides the greatest value," stated a court document filed on May 29. Canadian Tire, which has more than 1,700 retail locations across the country, says it has also submitted a bid for "a handful" of Hudson's Bay's lease locations. According to court records, HBC has received 12 bids for 39 of its leases. Last month, the Hudson's Bay announced it reached a deal to sell 28 lease locations in Ontario, Alberta and British Columbia to Ruby Liu Commercial Investment Corp. The company is indirectly controlled by B.C. mall owner, Ruby Liu. Liu plans to launch "a new modern department store concept in Canada," Hudson's Bay said in a statement. The retailer added that the deal still needs approval from both the court and the landlords controlling the 28 leases. "There can be no assurances that the conditions to closing will be satisfied," stated HBC. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
05-05-2025
- Business
- CBC
Hudson's Bay backtracks on cutting workers' commission pay, but still won't offer severance
Social Sharing Hudson's Bay Co. has backtracked on its decision last month to cut commission pay earned by hundreds of cosmeticians and fragrance advisers during liquidation sales, CBC News has learned. The retailer's sudden change of heart follows a grievance filed by its union, Unifor, which represents dozens of the workers, and CBC News coverage. CBC reported two weeks ago that several cosmeticians and fragrance advisers (also knows as beauty advisers) said they were distraught over the loss of commission pay, as it would significantly reduce their take-home pay. "It wasn't a good look for them to treat employees that way," said a beauty adviser in B.C., in response to Hudson's Bay backtracking. "I'm just so grateful that I'm getting the commission back," said the person, adding that it provides at least an extra $10 an hour on top of base pay — which is just above minimum wage. "We're ecstatic that we're going to be able to pay bills now." CBC News is withholding the worker's name due to fear of repercussions from the retailer for speaking with the media. In March, cash-strapped Hudson's Bay was granted creditor protection as it considered bids for segments of the company. The iconic retailer's more than 9,300 employees are expected to lose their jobs by June 15 — the closing date for all 96 Bay and Saks-branded stores. Beauty advisers earn commission on products sold, on top of a base salary. On April 8, Hudson's Bay gave these workers 12 days' notice that the company would start paying them base pay only, according to a company-issued letter seen by CBC News. It was another in a series of blows to Hudson's Bay workers, who learned last month the retailer won't pay severance to laid-off employees. In a grievance filed against Hudson's Bay, Unifor argued the commission cut violated its members' collective agreement. "You can't just, midstream, [reduce] someone's pay," said Dwayne Gunness, president of Unifor Local 40, which represents 40 beauty advisers. WATCH | Hudson's Bay pays big bonuses to executives but no severance for workers: Hudson's Bay to pay $3M in bonuses, but no severance for workers 1 month ago Duration 2:04 Hudson's Bay workers are speaking out after learning they will receive no severance pay as the company confirms it will pay out $3 million in bonuses to executives and managers handling the liquidation of most stores. Two weeks later, the company reversed course and said commission pay would remain with no interruptions, according to Unifor and a Hudson's Bay note sent to beauty advisers that CBC News has seen. The note did not state a reason for the decision. The retailer did not immediately respond to requests for comment. Hudson's Bay starts laying off workers Gunness says that last Friday, Hudson's Bay laid off 157 workers at its online distribution centre in Toronto. It marks the first round of non-corporate layoffs. The company terminated around 200 corporate employees on April 4, according to court documents. Although Hudson's Bay has reinstated commission pay, it won't be paying any workers severance once they're laid off. "I'm having a really hard time accepting the fact that we don't get severance," said Hazel Harris (no relation to this reporter), one of the 157 laid-off distribution centre workers. "It's very heartbreaking what's going on." Harris, 60, has worked for Hudson's Bay for more than seven years. She says severance pay would have provided a much-needed safety net. "I'm scared because with the trade war looming like an umbrella over us, we don't know how many jobs there will be out there," she said. "When you join the older community, it's even more difficult to find a job, so it's going to be a tough road ahead." Unifor, which represents a total of 595 Hudson's Bay employees, says some members are entitled to upwards of $35,000 in severance pay. Gunness says once all the 595 workers are laid off, Unifor will file a grievance over the issue, as severance is also included in the workers' contract. "We have a collective agreement which is legally binding," he said. applying for financial assistance through a federal government program for workers laid off by insolvent companies.
Yahoo
26-03-2025
- Business
- Yahoo
Hudson's Bay managers will get up to $3 million in bonuses, but workers get no severance
The beleaguered Hudson's Bay Co., which plans to close most of its 96 stores by the end of June, will pay up to $3 million total in retention bonuses to 121 managers and executives — but will not pay severance to its more than 9,300 workers, most of whom will soon lose their jobs. The news is not going over well with some labour activists and workers. "That is incredibly egregious," said Canadian Labour Congress president Bea Bruske. "They need to go back and actually make sure all of their workers get some of that $3 million." Kevin Grell, who works at a Bay online distribution site in Toronto, was dismayed when he learned about the bonus payments from CBC News. "My emotions are taking over right now," said Grell, who worries he may soon be out of a job. Asked for his reaction to the bonuses, he said, "If I was to answer that, I may get in trouble." After collecting his thoughts, Grell added, "It's unbelievable. It's a kick in the ass." Kevin Grell, 61, has been a Bay employee for more than eight years. He has already started searching for another job, but has had no luck yet. (Mark Bochsler/CBC) Earlier this month, the iconic department store was granted creditor protection as it attempts to restructure to stay afloat. Liquidation sales started on Monday at all but six of its Bay and Saks-branded locations. According to documents filed in the Ontario Superior Court of Justice, cash-strapped Hudson's Bay will provide up to $3 million to 94 store managers, and 27 non-store staff. Ten non-store "senior leadership" staff stand to get the biggest bonuses, sharing up to $1,087,750 of the earmarked fund. (The court documents value the bonuses at $2.7 million but say the total is "not to exceed $3 million.") The bonuses will serve as incentives to the staff "whose continued service will be critical to the success of any wind-down or restructuring" of the company, say court documents. Employment lawyer Adrian Ishak says paying retention bonuses is common practice when indebted companies go bankrupt or restructure. Court documents lay out the Bay's plan to pay 121 upper level staff up to $3 million in retention bonuses. The total here equals $2,725,215 but court records say the total amount is 'not to exceed $3 million.' (Ontario Superior Court of Justice) "In cold and unfeeling terms, it makes logical economic sense," said Ishak, who is with the Piccolo Heath law firm in Toronto. "You need to be able to retain your top people who are going to be designing, and implementing the strategy, and the plan to reorganize the business." Currently, Hudson's Bay is still trying to find a restructuring solution. Financial assistance for workers Hudson's Bay did not answer a question about the retention bonuses. But spokesperson Tiffany Bourré confirmed to CBC News that the retailer won't pay laid-off workers any severance. In bankruptcy and receivership cases, cash-strapped companies can opt not to pay severance, forcing laid-off workers to make claims as unsecured creditors — which will likely result in pennies on the dollar. Bourré says workers' pensions should be safe, and that they may receive some financial support through Canada's Wage Earner Protection Program, a federal program that provides financial assistance to workers when companies go bankrupt or are in receivership. WATCH | The Bay beings liquidation sales: But lawyer Andrew Hatnay, who represents a number of Hudson's Bay employees, says workers won't be able to apply for assistance until they have all been laid off, which could be months from now. He says the absence of severance payments — which serve as a safety net — has left workers distressed. "They're upset," Hatnay said. "They don't want to lose their jobs in a difficult economy." Grell, 61, has been a Bay employee for more than eight years. He says he has already started searching for another job, but has had no luck. "It's overwhelming. I've even had nights where I wake up in the middle of the night with worry," he said. Under normal circumstances, Ontario requires employers pay laid-off workers severance equalling at least one week's pay for each year of employment, up to a maximum of 26 weeks. The rules can vary in other provinces. Grell says losing out on severance will make things more difficult for workers. Many Sears Canada employees wound up with reduced pensions and no severance pay after that retailer filed for bakruptcy protection in 2017. (Sophia Harris/CBC) "That [money] would have gone a long way. That would have helped with the bills, the rent, the food," he said. "A lot of people are living paycheque to paycheque." CBC News tried to interview several other Bay employees, but they declined. Grell says many workers are afraid to speak publicly, because they signed a non-disclosure agreement when they were hired. Hudson's Bay did not respond to a question about workers signing such agreements. Legislation to protect severance? Sears Canada also faced criticism when CBC News revealed that company, which filed for bankruptcy protection in 2017, paid no severance to its 12,000 workers, but did pay big retention bonuses to 43 executives and senior managers. Many Sears employees also wound up with reduced pensions. The resulting backlash led to federal legislation in 2023 which improves protections for workers with defined benefit pension plans if their employer becomes insolvent. The legislation takes effect in 2027. According to House of Commons debate transcripts in 2022, some MPs pushed for severance protections to be included in the legislation, but they were unsuccessful. "It was incredibly disappointing and frustrating," said Bruske, with the Canadian Labour Congress. "We need to also strengthen things like severance pay because when you are out of a job in the market that we have today, in an affordability crisis, in a housing crisis, workers have tough decisions to make." She says with what's going on at Hudson's Bay, workers' rights need to be an election issue. "Now is the time for all workers to… ask the candidates who are coming to their door, 'What are you doing on worker protections? What is your position on things like severance pay?'" However, Ishak, the lawyer, argues protecting workers' severance in bankruptcy cases comes at a price. Currently in bankruptcy proceedings, secured creditors, like banks, are first in line to get paid the money they're owed. He says if workers took priority over banks, it could discourage them from financing new ventures. "It will be a huge disincentive for those companies to advance loans. And without those loans, companies can't flourish." Sign in to access your portfolio
CBC
26-03-2025
- Business
- CBC
Hudson's Bay managers will get up to $3 million in bonuses, but workers get no severance
The beleaguered Hudson's Bay Co., which plans to close most of its 96 stores by the end of June, will pay up to $3 million total in retention bonuses to 121 managers and executives — but will not pay severance to its more than 9,300 workers, most of whom will soon lose their jobs. The news is not going over well with some labour activists and workers. "That is incredibly egregious," said Canadian Labour Congress president Bea Bruske. "They need to go back and actually make sure all of their workers get some of that $3 million." Kevin Grell, who works at a Bay online distribution site in Toronto, was dismayed when he learned about the bonus payments from CBC News. "My emotions are taking over right now," said Grell, who worries he may soon be out of a job. Asked for his reaction to the bonuses, he said, "If I was to answer that, I may get in trouble." After collecting his thoughts, Grell added, "It's unbelievable. It's a kick in the ass." Earlier this month, the iconic department store was granted creditor protection as it attempts to restructure to stay afloat. Liquidation sales started on Monday at all but six of its Bay and Saks-branded locations. According to documents filed in the Ontario Superior Court of Justice, cash-strapped Hudson's Bay will provide up to $3 million to 94 store managers, and 27 non-store staff. Ten non-store "senior leadership" staff stand to get the biggest bonuses, sharing up to $1,087,750 of the earmarked fund. (The court documents value the bonuses at $2.7 million but say the total is "not to exceed $3 million.") The bonuses will serve as incentives to the staff "whose continued service will be critical to the success of any wind-down or restructuring" of the company, say court documents. Employment lawyer Adrian Ishak says paying retention bonuses is common practice when indebted companies go bankrupt or restructure. "In cold and unfeeling terms, it makes logical economic sense," said Ishak, who is with the Piccolo Heath law firm in Toronto. "You need to be able to retain your top people who are going to be designing, and implementing the strategy, and the plan to reorganize the business." Currently, Hudson's Bay is still trying to find a restructuring solution. Financial assistance for workers Hudson's Bay did not answer a question about the retention bonuses. But spokesperson Tiffany Bourré confirmed to CBC News that the retailer won't pay laid-off workers any severance. In bankruptcy and receivership cases, cash-strapped companies can opt not to pay severance, forcing laid-off workers to make claims as unsecured creditors — which will likely result in pennies on the dollar. Bourré says workers' pensions should be safe, and that they may receive some financial support through Canada's Wage Earner Protection Program, a federal program that provides financial assistance to workers when companies go bankrupt or are in receivership. WATCH | The Bay beings liquidation sales: Hudson's Bay to liquidate all but 6 stores as shoppers race for memorabilia 4 days ago Duration 2:45 But lawyer Andrew Hatnay, who represents a number of Hudson's Bay employees, says workers won't be able to apply for assistance until they have all been laid off, which could be months from now. He says the absence of severance payments — which serve as a safety net — has left workers distressed. "They're upset," Hatnay said. "They don't want to lose their jobs in a difficult economy." Grell, 61, has been a Bay employee for more than eight years. He says he has already started searching for another job, but has had no luck. "It's overwhelming. I've even had nights where I wake up in the middle of the night with worry," he said. Under normal circumstances, Ontario requires employers pay laid-off workers severance equalling at least one week's pay for each year of employment, up to a maximum of 26 weeks. The rules can vary in other provinces. Grell says losing out on severance will make things more difficult for workers. "That [money] would have gone a long way. That would have helped with the bills, the rent, the food," he said. "A lot of people are living paycheque to paycheque." CBC News tried to interview several other Bay employees, but they declined. Grell says many workers are afraid to speak publicly, because they signed a non-disclosure agreement when they were hired. Hudson's Bay did not respond to a question about workers signing such agreements. Legislation to protect severance? Sears Canada also faced criticism when CBC News revealed that company, which filed for bankruptcy protection in 2017, paid no severance to its 12,000 workers, but did pay big retention bonuses to 43 executives and senior managers. Many Sears employees also wound up with reduced pensions. The resulting backlash led to federal legislation in 2023 which improves protections for workers with defined benefit pension plans if their employer becomes insolvent. The legislation takes effect in 2027. According to House of Commons debate transcripts in 2022, some MPs pushed for severance protections to be included in the legislation, but they were unsuccessful. "It was incredibly disappointing and frustrating," said Bruske, with the Canadian Labour Congress. "We need to also strengthen things like severance pay because when you are out of a job in the market that we have today, in an affordability crisis, in a housing crisis, workers have tough decisions to make." She says with what's going on at Hudson's Bay, workers' rights need to be an election issue. "Now is the time for all workers to… ask the candidates who are coming to their door, 'What are you doing on worker protections? What is your position on things like severance pay?'" However, Ishak, the lawyer, argues protecting workers' severance in bankruptcy cases comes at a price. Currently in bankruptcy proceedings, secured creditors, like banks, are first in line to get paid the money they're owed. He says if workers took priority over banks, it could discourage them from financing new ventures.
