Photo: Castanet

Shoppers walking into the Hudson's Bay Company store in Aberdeen Mall are greeted by a sign informing them the company's popular rewards program has been suspended amid financial restructuring that could spell the end of some stores.

Hudson’s Bay Company’s plans to shutter its Kamloops store are “absolutely devastating” for employees and the community, according to the store’s union representative.

Canada’s oldest company, which has ties to Kamloops going back more than 200 years, unveiled a restructuring plan on Friday that would see only six stores remain open — all of them in Ontario and Quebec. The remainder would begin liquidation on Monday, with retail operations slated to cease by the middle of June.

“This news is absolutely devastating, not only for our members but for the entire city of Kamloops and the surrounding area,” Jordan Lawrence, USW Local 1-417 financial secretary aid in a press release.

“Generations of families have shopped at this store and been served by our amazing members, who have taken great pride in their work. The liquidation and the company’s ongoing financial struggles are deeply concerning.”

Lawrence said the Aberdeen Mall store has 30 unionized staff. Across Canada, more than 9,300 workers are employed at 80 Hudson’s Bay stores, three Saks Fifth Avenue stores and 13 Saks Off 5th stores.

The spectre of the Kamloops store’s closure has already attracted bargain hunters looking to score liquidation deals.

Huge vacancy for mall

The closure would leave a massive vacancy in Aberdeen Mall, which is still working to fill the space left empty when anchor tenant Sears shuttered more than seven years ago.

Castanet asked mall representatives about the situation, but they would not comment.

“Aberdeen Mall is unable to comment on the situation and we are not authorized to comment on behalf of our tenants,” marketing manager Kristi Williams said in an email.

More than 80 employees were out of a job when Sears closed its location in the mall in 2017, leaving a 120,000-square foot vacancy.

Aberdeen Mall subsequently landed major retailers like Old Navy, Marshalls, Fresh St. Market and Ardene to fill most of that space, but some Sears vacancies remain.

The Kamloops Hudson’s Bay store was closed for half of last year due to strike action, reopening in June.

‘Workers deserve clarity'

Lawrence said he wants to see transparency from HBC throughout the liquidation process, and he expects the company to honour all wages, benefits and severance requirements.

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 covers executives and senior managers, is underfunded by millions, as are some benefits funds, according to court documents.

“Workers deserve clarity and fairness, not vague promises or backroom deals,” Lawrence said.

“We’ve seen the devastating consequences for workers when companies like Sears shut down. Hudson’s Bay must protect the retirement security of its employees and ensure that pensions are there for workers.”

Lawrence said Hudson’s Bay workers need more from the company.

“HBC must ensure that frontline workers aren’t the ones left paying the price,” he said.

“We stand ready to defend our members at the Kamloops store and will fight for their financial security every step of the way. We urge HBC to find a path forward to keep this store open for generations to come.”

HBC dates back to 1670, making it the oldest company in Canada. It began operating in Kamloops in 1821, when it merged with the North West Company.

— with files from The Canadian Press