Law firm for Hudson’s Bay employees files motion against move to appoint new lawyers
Posted: Wed Apr 23, 2025 2:09 pm
Law firm for Hudson’s Bay employees files motion against move to appoint new lawyers
Susan Krashinsky RobertsonRetailing reporter
Thursday, March 20, 2025.
Jeff McIntosh/The Canadian Press
A law firm representing some Hudson’s Bay Co. employees has filed a cross-motion contesting the retailer’s request that the court appoint new lawyers for its workers, as it prepares for more job cuts in the coming weeks.
Facing a financial crisis, Canada’s oldest retailer was granted protection from its creditors under the Companies’ Creditors Arrangement Act on March 7. Before filing, the company had more than 9,300 employees, and earlier this month Hudson’s Bay terminated the jobs of more than 270 corporate employees.
As it faces “further headcount reductions,” the company has recommended that the court appoint Ursel Phillips Fellows Hopkinson LLP to represent its current and former employees in the CCAA process, according to a court filing last week.
On Tuesday, another law firm, Koskie Minsky LLP, filed court documents objecting to the move. Koskie Minsky says it has been retained by more than 400 current and former employees and retirees, and has already been “acting as de facto representative counsel” in the CCAA process. Lawyers with the firm have attended court hearings in recent weeks, and have been assisting those employees and retirees during the process.
Koskie Minsky’s clients “do not trust HBC to select another law firm, and do not want to have that HBC’s selection imposed on them against their wishes,” the firm wrote in its notice of cross-motion on Tuesday.
The firm has recommended that Douglas Cunningham, a retired associate chief justice of Ontario, act as an independent adviser to recommend whom the court should appoint as representative counsel. Alternatively, it asked that a contested motion be scheduled to appoint the law firm.
Koskie Minsky lawyers have also been vocal in raising concerns about the lack of severance payments and about the fate of long-term disability payments.
Hudson’s Bay lawyers have provided “no response” to emails from Koskie Minsky asking about the disability benefits, the filing stated.
The company also informed employees that it would not pay severance to those whose positions are terminated. Koskie Minsky has estimated that the thousands of anticipated job losses – which are looming as the retailer liquidates the majority of its stores – will result in severance claims totaling more than $100-million.
In addition, Hudson’s Bay has cut off health benefits for employees and retirees, and terminated commission pay for sales associates, leading to financial hardship for the people affected, Andrew Hatnay of Koskie Minsky wrote in a letter to Ontario Superior Court Justice Peter Osborne on Tuesday.
The company’s recommendation to appoint another firm as representative counsel “has injected confusion among the employees and retirees in an already stressful environment for them,” Mr. Hatnay wrote.
The role of the lawyers appointed as representative counsel for the employees would include filing claims on employees’ behalf during the proceedings, participating in the settlement of any claims affecting them, and assisting former employees in navigating the federal government’s Wage Earner Protection Program, which is designed to pay workers whose companies are bankrupt or in receivership.
Hudson’s Bay has requested a hearing for this coming Thursday on the motion.
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