Hudson’s Bay Non-Unionized Employees, Former Employees with Continuing Entitlements from HBC, and Retirees

The Company’s motion to extend creditor protection to July 31, 2025 and to permit distribution of certain funds to secured creditors were approved by the Court on Tuesday, May 13, 2025. Because of significant efforts on the part of the Company, the Monitor, secured lenders and ourselves, we did not oppose the motion. We receive significant, substantive information and data, as well as specific assurances from the Company and Monitor that the distributions that were authorized would not prejudice employees’ rights. 

We have also made significant progress toward protecting the Represented Employees’ interests, particularly with respect to the immediate hardships that Represented Employees are facing, which we hope to be able to report on further in the coming weeks.

On Tuesday, May 13, a motion will be heard before the Court in which HBC is asking the Court to extend its creditor-protection until July 31, 2025 and for Court approval allowing the Company to distribute funds to certain secured creditors.

Employee Representative Counsel supports the request to extend creditor protection until July 31, 2025.  The court protection comes in the form of a Stay of Proceedings, which prevents creditors from taking actions against the Company while it tries to restructure. This continued breathing room is necessary for the Company to complete the liquidation, and to complete the processes currently underway to maximize the value to the estate and potentially secure a buyer for some part of the business to continue, all of which is in the Represented Employees’ interests.

However, we have grave concerns about the proposed distribution to the secured creditors.  We have expressed those concerns to the Company and the Monitor consistently since we were first given notice of the motion, and have expressed those concerns most recently in the form of the letter posted here on our website.  We have been in detailed negotiations with the Company, the Monitor and the secured creditors to ensure that Represented Employees’ interests are being protected, and we will oppose this motion if we are not able to receive adequate assurances in that respect.

On April 8^th HBC advised Cosmetic/Fragrance commission associates that it intended to cease paying Commissions on sales of cosmetic/fragrance products effective April 20^th.  In early May the Company chose to reverse this decision and reinstate the Commissions from April 20^th. The Company has confirmed that there will be no impact on eligible commission associate pay and all earnings have been fully restored as if no changes were ever implemented. This adjustment has been applied retroactively. Associates will receive see their commission pay based on all sales from April 20^th on the Company’s next regularly scheduled payroll dated May 23^rd.

As you know, on March 7, 2025, Hudson’s Bay Company ULC Compagnie De La Baie D’Hudson SRI and several related companies (“Hudson’s Bay”) were granted protection from their creditors under the Companies’ Creditors Arrangement Act (“CCAA”), pursuant to an Order of the Honourable Justice Osborne of the Ontario Superior Court of Justice.  Alvarez & Marsal Canada Inc. was appointed as the monitor in the CCAA Proceedings. The monitor maintains a regularly-updated website where court filings can be accessed here. 

On May 5, 2025, following the recommendation of an independent third-party, Ursel Phillips Fellows Hopkinson LLP was appointed as Representative Counsel to represent current and former employees with continuing entitles from the Applicants or any of them as at the date of the Initial Order, and retirees of the Applicants, who are not represented by a union, or were not represented by a union at the time of their separation from employment (the “Current or Former Employees”), or any person claiming an interest under or on behalf of a current or former employee of the Applicants including beneficiaries and surviving spouses but excluding directors and officers of the Applicants (collectively, the Represented Employees).

The terms of our appointment are set out in the Employee Representative Counsel Order of the Court, accessible here. 

If you do not wish to be represented by our firm you may opt out of this arrangement by completing the Opt-Out form that will be posted on the Monitor’s website and returning it to the Monitor, as directed on the form.

Please note that you must return your completed Opt-Out form to the Monitor in order to opt out of representation by the ERC.

Please note that if you choose to opt-out, you will not lose any legal entitlements through the CCAA process. However, any legal assistance which you might have accessed from the ERC, without cost to you, will not be available. If you opt out, and you wish to obtain legal assistance about your rights in this CCAA process, it will be at your own expense. We would ask you to consider this matter carefully, as opting out can have financial consequences for you.

If you have any questions about the Opt-Out process, please contact the Monitor at HudsonsBay@alvarezandmarsal.com or 1-416-847-5157.

If you have any additional questions about the proceeding, please email us at HBCEmployees@upfhlaw.ca or call us on our toll-free number at 1-800-414-6610.

An Employee Representative Counsel (ERC) is a firm of court appointed lawyers whose responsibilities include assisting affected employees and former employees in a Companies’ Creditors Arrangement Act (CCAA) process like the one your employer/former employer is now engaged in.

In the HBC CCAA proceedings, we have been appointed to represent current and former employees with continuing entitlements from the Applicants or any of them as at the date of the Initial Order, and retirees of the Applicants, who are not represented by a union, or were not represented by a union at the time of their separation from employment (the “Current or Former Employees”), or any person claiming an interest under or on behalf of a current or former employee of the Applicants including beneficiaries and surviving spouses but excluding directors and officers of the Applicants (collectively, the Represented Employees).

Former employees with continuing entitlements include former employees with salary continuations, former employees with vested pension entitlements, and former employees in receipt of Long-Term Disability Benefits.

The terms of our appointment are contained in the Employee Representative Order issued by the Court on May 5, 2025. The order sets out our role as:

1.  Representing the Represented Employees in the Insolvency Proceedings;

2.  Communicating with the Applicants, the Monitor and other stakeholders on behalf of the Represented Employees generally, and in respect of future motions and orders to be sought in the Insolvency Proceedings;

3.  Advising the Represented Employees in respect of employment or other workplace matters arising within the Insolvency Proceedings;

4.  Filing claims in any claims process that may be approved within the Insolvency proceedings;

5.  Advising the Represented Employees in respect of matters involving their other post employment benefits entitlements;

6.  Participating on behalf of the Represented Employees with the settlement or compromise of any rights, entitlements or claims of the Represented Employees; and

7.  Participating in and assisting with, on behalf of the Represented Employees, claims filed under the Wage Earner Protection Program Act, if applicable

Pursuant to that Order, Hudson’s Bay is required to pay our fees and disbursements. However, our responsibilities are to the Represented Employees, not Hudson’s Bay.

Typically, we assist Represented Employees in understanding what is happening in the proceedings, resolving any disputes related to employment during a liquidation, assisting employees with claims under the Wage Earner Protection Program, and where there is a CCAA claims process for claims against the company, assisting employees in making such claims.

The ERC is also empowered, as your representative, to negotiate with the employer, the Monitor and other stakeholders, on your behalf, to ensure your interests are represented in these proceedings. The kinds of issues an ERC typically negotiates about include individual litigation which has been stayed (stopped) because of the Court Order placing Hudson’s Bay in the CCAA process, and also larger issues like access to government programs which may become available to you as a result of the closure of part or all of Hudson’s Bay’s business.

We also remain available to the employees throughout this process to assist with your individual questions about the process, your entitlements and other matters relating to your employment with Hudson’s Bay. Please contact us through our dedicated email address at: hbcemployees@upfhlaw.ca, or our dedicated telephone line at: 1-800-414-6610.