Latest news with #WageEarnerProtectionProgramAct
Hamilton Spectator
4 days ago
- Business
- Hamilton Spectator
Hudson's Bay heads back to court to seek approval for Canadian Tire deal
TORONTO - Hudson's Bay is expected to return to court Tuesday morning to seek approval for a $30-million deal it signed with Canadian Tire Corp. Ltd. If the deal gets the OK from Ontario's Superior Court, Canadian Tire will be able to buy the rights to Hudson's Bay's intellectual property, which includes its name, its coat of arms and its iconic stripes. Court documents have also shown the deal includes the Bay's Distinctly Home brand, its Hudson North apparel line and trademarks like 'Bay Days' and the Zellers catchphrase 'lowest price is the law.' The move to get approval for the Canadian Tire deal comes months after Canada's oldest company filed for creditor protection and days after it closed all 96 of the stores it ran under its Bay and Saks banners on Sunday. Hudson's Bay has said the sale and closures were necessary because the 355-year-old company was not able to attract an investor to keep some semblance of the current business alive. Canadian Tire wound up being the winner of the Bay's trademarks after the company and its advisers invited 407 people and firms to bid on the intellectual property and other assets. Adam Zalev, co-founder of Bay financial adviser Reflect Advisors, said in court documents that 17 bids were received. Thirteen were for intellectual property, but Canadian Tire's was 'superior to all other bids considered,' he said. Hudson's Bay is expected to ask for a document describing why it chose Canadian Tire to be sealed because it contains commercially sensitive information, including the amounts offered by the next highest bidders. On top of taking over the trademarks, Canadian Tire will also assume a contract Hudson's Bay has with Pendleton Woolen Mills, an Oregon-based blanket and clothing maker. After Hudson's Bay and Pendleton disagreed about the use of some multistripe and 'point' motifs in 2009, they reached a settlement that gave Pendleton a license for some Bay trademarks. Aside from being asked to approve the Canadian Tire deal, a court is also expected to hear two other Bay motions Tuesday. The first is from RioCan Real Estate Investment Trust, which has a joint venture with the Bay. The venture has leases for 12 properties the department store used, but RioCan wants to put the partnership into receivership to protect its stakeholders and maximize the value it can recover. Receivership is a process allowing a third-party to take control of a company's assets, oversee their liquidation and repay creditors. The court will also be asked to recognize the Bay as the former employer of all the department store's workers who have been terminated. The declaration will allow the Bay's 9,364 staff, including more than 8,300 who have already lost their jobs, to recoup money they may be owed from the retailer under the Wage Earner Protection Program Act. People who qualify under the federal program can earn up to $8,844.22 this year. This report by The Canadian Press was first published June 3, 2025. Companies in this story: (TSX:CTC.A, TSX:REI-UN)
Yahoo
4 days ago
- Business
- Yahoo
Hudson's Bay heads back to court to seek approval for Canadian Tire deal
TORONTO — Hudson's Bay is expected to return to court Tuesday morning to seek approval for a $30-million deal it signed with Canadian Tire Corp. Ltd. If the deal gets the OK from Ontario's Superior Court, Canadian Tire will be able to buy the rights to Hudson's Bay's intellectual property, which includes its name, its coat of arms and its iconic stripes. Court documents have also shown the deal includes the Bay's Distinctly Home brand, its Hudson North apparel line and trademarks like "Bay Days" and the Zellers catchphrase "lowest price is the law." The move to get approval for the Canadian Tire deal comes months after Canada's oldest company filed for creditor protection and days after it closed all 96 of the stores it ran under its Bay and Saks banners on Sunday. Hudson's Bay has said the sale and closures were necessary because the 355-year-old company was not able to attract an investor to keep some semblance of the current business alive. Canadian Tire wound up being the winner of the Bay's trademarks after the company and its advisers invited 407 people and firms to bid on the intellectual property and other assets. Adam Zalev, co-founder of Bay financial adviser Reflect Advisors, said in court documents that 17 bids were received. Thirteen were for intellectual property, but Canadian Tire's was 'superior to all other bids considered,' he said. Hudson's Bay is expected to ask for a document describing why it chose Canadian Tire to be sealed because it contains commercially sensitive information, including the amounts offered by the next highest bidders. On top of taking over the trademarks, Canadian Tire will also assume a contract Hudson's Bay has with Pendleton Woolen Mills, an Oregon-based blanket and clothing maker. After Hudson's Bay and Pendleton disagreed about the use of some multistripe and 'point' motifs in 2009, they reached a settlement that gave Pendleton a license for some Bay trademarks. Aside from being asked to approve the Canadian Tire deal, a court is also expected to hear two other Bay motions Tuesday. The first is from RioCan Real Estate Investment Trust, which has a joint venture with the Bay. The venture has leases for 12 properties the department store used, but RioCan wants to put the partnership into receivership to protect its stakeholders and maximize the value it can recover. Receivership is a process allowing a third-party to take control of a company's assets, oversee their liquidation and repay creditors. The court will also be asked to recognize the Bay as the former employer of all the department store's workers who have been terminated. The declaration will allow the Bay's 9,364 staff, including more than 8,300 who have already lost their jobs, to recoup money they may be owed from the retailer under the Wage Earner Protection Program Act. People who qualify under the federal program can earn up to $8,844.22 this year. This report by The Canadian Press was first published June 3, 2025. Companies in this story: (TSX:CTC.A, TSX:REI-UN) Tara Deschamps, The Canadian Press 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
Yahoo
28-05-2025
- Business
- Yahoo
Hudson's Bay to lay off 89% of employees amid CCAA proceedings
Canada's Hudson's Bay Company is planning to lay off 8,347 employees, or 89% of its workforce, by 1 June 2025. In a motion filed on 26 May 2025, Hudson's Bay stated that employees 'will be paid their accrued vacation pay as at their date of termination, however, the company does not expect any other termination or severance payments to be paid by the company upon termination'. The layoffs come as the retailer prepares to complete its liquidation sale and shut down all its stores. Founded in 1670, Hudson's Bay department stores have long anchored shopping malls across the country. However, the stores have struggled in recent years with reduced foot traffic and the growing dominance of online commerce. The planned layoffs occur against a backdrop of rising unemployment in Canada, with the national jobless rate reaching 6.9% in April 2025 - the highest level since November 2024, as reported by Reuters. Canada's export-driven economy has also been affected by US tariffs. The company is pursuing a declaration under the Wage Earner Protection Program Act (WEPPA) to support affected employees. This declaration would enable terminated workers to receive eligible unpaid wages, including severance and termination pay, salaries, commissions and vacation pay. In March 2025, Hudson's Bay announced that it would pursue a full liquidation of its stores unless an alternative could be found. The move followed the initiation of restructuring proceedings earlier that month. Of 1,017 employees remaining after 1 June, 899 are expected to lose their jobs around 15 June when the company's distribution centres close. The final 118 workers will remain to assist with winding down operations under the Companies' Creditors Arrangement Act (CCAA). Prior to the liquidation process, Hudson's Bay employed 9,634 people across 96 stores, four distribution centres and its head office. Hudson's Bay's brand assets, including its coat of arms and signature stripes, were acquired by the Canadian Tire Corporation for C$30m ($21m) in May 2025. "Hudson's Bay to lay off 89% of employees amid CCAA proceedings" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Hudson's Bay to lay off more than 8,300 employees by June 1
Hudson's Bay will lay off more than 8,300 employees — about 89 per cent of its workforce — by Sunday, according to documents published Monday evening, at which point the retailer will have closed all its stores and its liquidation sale will have run its course. CBC News previously reported that the Canadian brand was expected to wind down its operating stores on June 1, and that the majority of its employees would likely be terminated by then. Some employees will be kept on staff to help sell any in-store furniture and to shut down the remaining locations. Once the company's distribution centres close on June 15, an additional 899 employees are expected to be laid off. The remaining 118 employees will help the company carry out its obligations through the Companies' Creditors Arrangement Act, the documents said. Some workers are eligible for severance pay and other wages under the Wage Earner Protection Program Act, the documents noted. The act protects employees during scenarios where they are owed money by an employer undergoing insolvency. A court order will determine whether Hudson's Bay employees can apply for benefits under the WEPP. However, the law firm representing those workers says the amount of wages will vary between employees and are not guaranteed. "Given HBC's significant amount of secured debt, it is not clear that employees will be able to recover any amounts owing to them directly from HBC," read a post on the firm's website.
Yahoo
21-04-2025
- Business
- Yahoo
Canadian history to go on the block as Hudson's Bay unwinds its empire
Hudson's Bay Co. wants to appoint a legal representative and create a 'hardship fund' to support its employees, as Canada's oldest department store gradually closes its shops and lays off more workers in the coming weeks as it tries to pay back about $1 billion to its creditors. The company, which employs more than 9,000 people, has sent termination letters to 272 corporate employees and anticipates further reductions, it said in a court document dated April 17. Most employees won't receive severance payments, but workers may get money through the federal Wage Earner Protection Program Act or if HBC manages to recover a 'sufficient' amount of money to pay back its unsecured creditors, the document said. To 'alleviate some of the difficulties associated with the termination of certain benefits,' HBC is in talks with a two lenders to start a hardship fund that can provide financial assistance to its current and former employees, it said. HBC is also seeking court approval to appoint Toronto-based law firm Ursel Phillips Fellows Hopkinson LLP as a legal representative to support the interests of both its current and former employees, which would 'contribute to overall cost savings' and streamlining by 'serving as a single point of contact' between employees, HBC and the court, the company said. Hiring a legal representative for employees during complicated restructurings is a common practice. HBC's proposed law firm has previously represented workers at Nordstrom Canada, Sears Canada Inc. and Air Canada. 'Ursel Phillips Fellows Hopkinson LLP has extensive experience representing large groups of employees and former employees in matters involving employment-based claims,' HBC chief financial officer Jennifer Bewley said in the court document. HBC is also trying to get its proposal to sell its artifacts through a separate auction approved. The company's collection has more than 1,700 pieces of art and more than 2,700 artifacts that 'reflect the rich heritage and cultural legacy of the company,' it said. Among them is the Royal Charter, a document that gave the company exclusive trading rights over a portion of Canada in 1670. A separate auction would make the sale of the art collection more transparent and help ensure that 'all laws and regulations in respect of Canadian heritage and cultural property are adhered to,' Adam Zalev, cofounder of Reflect Advisors LLC, HBC's financial adviser, said in the court document. Several parties, such as government institutions, museums, universities and high-net-worth individuals, have expressed interest in HBC's art collection, he said. Some have also asked that the art collection be made available for public viewing in a museum or other public institution. The auction is expected to take place before June 30. Even so, some historians and analysts are concerned that Canadian organizations may not be able to afford these culturally significant artifacts and that they may end up going abroad. '(The Royal Charter) is an object of national significance, so it would be nice if it could be acquired by a public collection,' Carl Benn, a history professor at Toronto Metropolitan University who previously worked at museums for more than three decades, said. 'Although the cost might be prohibitive.' He said a big issue in Canada is that most public museums and archives don't have enough money to go after the things they should be going after. 'It would be best if (HBC) actually just donated the charter to Library Archives Canada,' he said. 'But I can understand how the legalities and the context of the company going bankrupt are leading it to send something to auction.' Benn said there are laws that prevent the export of such valuable artifacts for a certain period of time in case a foreign buyer purchases it, but he hopes a major Canadian institution can buy it. Retail analyst Bruce Winder said HBC's auction would be a unique event in the retail sector, so it will be 'interesting' to see how it plays out. 'There's going to be some sensitivity around it because these artifacts are going to be seen as very Canadian,' he said. 'There's going to be some public scrutiny about who buys the artifacts and whether they remain in Canada.' April 30 deadline looms: What's next for Hudson's Bay? HBC's restructuring plan opposed by employees, joint-venture partner RioCan Separately, Patrick Shea, a lawyer at Gowling WLG (Canada) LLP and a former member of the Canadian Forces, along with a group of businesspeople and former members of the military, is trying to ensure that Second World War memorials at HBC stores in downtown Calgary and Toronto are protected. 'I am concerned that they may get lost in the shuffle because they have no economic value,' he said of the plaques that combined have the names of about 100 young men who were killed during the war. 'I have written to the Hudson Bay, asking them to preserve the memorials and to ensure that they end up in a proper place.' • Email: nkarim@ Sign in to access your portfolio
