TORONTO – Lately, Kevin Grell feels an instant heaviness settle over him when he walks through the door at Hudson’s Bay’s east Toronto fulfilment centre.
He and the other workers at the Scarborough site assemble online orders for the retailer. They’ve been anxious about the company’s future for months, but when it filed for creditor protection on March 7 and then asked for permission to liquidate all its stores 10 days later, Grell said the worry became inescapable.
“You can feel the difference. Everybody’s concerned. Everybody’s scared. Everybody’s uncertain what the future holds,” said Grell, an e-commerce processor who marked eight years packaging orders for the Bay in November.
“People have bills to pay and people have mortgages. They don’t know what to do and it’s just hard, because a lot of people are sad.”
Working in spite of the emotions, they’ve prepared the rush of orders that have materialized from Canadians wanting some memento from the beleaguered company, while wondering how much longer they may be collecting a paycheque.
Their experiences and feelings offer a window into the human toll the downfall of Canada’s oldest company is taking and serves as a precursor for the dark days that may come if the 355-year-old business doesn’t find enough financing to reverse its liquidation plans.
For the 9,364 employees on the company’s payroll, the potential closure of 80 Hudson’s Bay stores, three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada will have deep consequences.
Hudson’s Bay did not provide a comment for this story.
However, its president and chief executive Liz Rodbell said in a statement last week that the company’s “resolve is strengthened by the overwhelming support from customers and associates.”
“These powerful experiences remind us why we must continue to pursue every possible opportunity to secure the necessary support from key landlords and other stakeholders to save The Bay,” she said.
As the situation currently stands, staff could see their jobs disappear in a matter of days or weeks, depending on how fast the company moves. Many have no idea whether they will hang onto their pensions and benefits or even receive severance.
“Obviously in situations like this, the severance is at the bottom of the barrel,” said Grell.
“Everybody’s come to the conclusion that there may not be severance and they’re not happy.”
Terminating staff so severance doesn’t have to be paid saves the company $100 million, estimates Andrew Hatnay, a lawyer representing employees.
Ever since Hudson’s Bay filed for creditor protection, he’s seen a flurry of questions from employees looking for any shred of comfort.
Court documents show the company’s pension plan had more than 21,000 members as of Dec. 31, including some that worked for Hudson’s Bay acquisitions Simpsons, Zellers and Kmart Canada, and say the plan was “sufficiently funded” and “able to satisfy its liabilities.”
Staff have been told their pensions are safe, but a supplemental retirement pension plan, which Hatnay said covers executives and senior managers, is underfunded by millions, as are some benefits funds, according to court documents.
The situation is “disappointing and embarrassing,” said Margaret Henry, who works as an e-commerce processor at the same fulfilment facility as Grell.
While she’s at an age where she could retire, others won’t be so fortunate because they’re younger. She worries about staff who have struggled with English, as well.
Grell said many of the workers at their facility are “mature.” For example, he is 61, making him a few years away from retirement.
He got his job in 2016 through a temp agency and immediately fell in love with it and his colleagues.
“It’s like one big family,” he said.
The camaraderie kept him coming back even after Hudson’s Bay laid him off no less than three times in recent years.
Henry, who has been in her role since 2012, grew accustomed to watching staff lose their jobs in rounds of layoffs only to be offered the chance to return shortly after, when demand picked up again.
The cycle kept repeating to the point where she now estimates there’s about 60 workers in the building.
When she started, there were 35 workers, but as Hudson’s Bay poured money into its e-commerce operations the team expanded to about 400 people at one point.
They grew used to overtime being plentiful when key shopping seasons like Christmas or the company’s famed Bay Days came around, but something changed around Black Friday 2023, Henry said.
Staff had been led to believe sales would be high but by 8 a.m. they could tell they weren’t.
Workers knew something was wrong.
“They saw it not only in the work decreasing, but they saw it in other areas,” Henry said.
For example, the lunchrooms lost their TVs. Paper towels became hard to come by.
Henry figured the sales slump had something to do with the company lacking modernization and facing fierce competition from more trendy retailers and e-commerce giants like Temu and Shein.
Then, she noticed products usually filtering through the warehouse stopped trickling in from vendors.
“I knew at that point they weren’t paying the creditors,” she said.
Henry’s hunch appeared to be confirmed when court documents showed her employer owed hundreds of millions to a 26-page list of creditors including Chanel, Columbia Sportswear and Diesel.
It said its financial troubles were caused by decreased consumer spending, Canada-U.S. trade tensions and sluggish downtown store traffic following the COVID-19 pandemic.
Henry and Grell, both union stewards, learned about the true extent of the company’s struggles in the news.
Because Henry has friends who had worked at the now-defunct Sears Canada and watched their company spiral from creditor protection to liquidation over almost a year, she figured she had more time left.
With Hudson’s Bay having asked permission to sell off merchandise in stores this week, Henry said her timeline is looking to be shorter.
It didn’t have to be this way, Hatnay argues. He believes the company should have sought creditor protection long before its financial state got this bad — something he’s seen judges urge for years.
Grell agrees. He’s keeping an eye on external job postings but with consumers being more cost conscious these days and companies staring down tariffs, he knows it won’t be easy to find a new gig.
While he focuses on what time he has left at a job he considers “not just a paycheque,” he wants customers to know it’s been an honour to prepare their orders.
“We’re all very sad to see you go and we’re very proud to serve you.”
This report by The Canadian Press was first published March 21, 2025.
