When Hudson’s Bay Company (HBC) closes the majority of its stores in June 2025, the repercussions will extend far beyond the retailer's direct workforce. The impending shutdown is expected to result in significant job losses not only for HBC’s 9,364 employees but also for those working at various service providers, such as salons and spas located within Hudson's Bay and its affiliates, Saks Fifth Avenue and Saks Off Fifth.
The impact on the Canadian job market will be substantial, as numerous individuals employed at beauty counters, jewelry departments, and fashion boutiques will also face unemployment. Lanita Layton, a luxury and retail consultant with past experience as a vice-president at Holt Renfrew, underscored the widespread implications of HBC’s closure, stating that it is a broader issue than the immediate layoff of its employees.
Mike Purkis, the president of Caulfeild Apparel Group Ltd., projected that the fallout from Hudson's Bay's decline could lead to more job losses outside the company than within it. His business, associated with brands like Joe Boxer, Modern English, and Benson, had already reduced staffing levels in anticipation of HBC’s challenges. He noted that the Bay had been struggling for two years and that businesses had to realign to mitigate potential impacts. Although Purkis does not foresee additional cuts to his own workforce, he anticipates that inventory management companies will suffer due to decreased demand, having already canceled services in light of the liquidation discussions.
Furthermore, he indicated that jobs related to maintaining the physical store environment—such as those managing parking lots and cleaning services—would also be at risk. Companies that relied entirely on Hudson’s Bay for selling their products would face serious difficulties, as many will struggle to recover losses owing to a lengthy creditor list comprising 26 pages and nearly $1 billion in outstanding debt.
John Nguyen, CEO of the salon chain Hair Republic, expects his company to withstand the impending closures. However, he admitted job losses among some support staff are inevitable. While he is optimistic about transferring staff from his Ottawa location—situated inside Hudson's Bay—to other city locations, he remains uncertain about the future of workers at his Toronto salon, which has dual access points, potentially allowing for continued operations post-HBC closure.
Nguyen emphasized the importance of maintaining morale during this tumultuous time, especially amidst labor shortages in the sector, to prevent premature departures by staff. Conversely, employees from other companies are receiving more definitive news regarding layoffs. For example, Estée Lauder confirmed that staff managing MAC counters at Hudson’s Bay would be terminated by May 31. Jeremy Herman, an associate at Samfiru Tumarkin LLP, reported that he had heard from up to 20 Estée Lauder employees regarding their terminations.
Both Herman and Layton suggested that comparable fates awaited workers hired by luxury brands for Bay or Saks departments, with uncertainties surrounding their future employment. With such closures forecasted, the retail landscape in Canada is set for a significant upheaval, prompting wider discussions on the potential economic ramifications that extend beyond the walls of Hudson’s Bay stores.
