Court approves hardship fund, termination payments for some ex-Hudson’s Bay staff

Pigeons roost on the Hudson's Bay department store sign in downtown Montreal on Monday, March 17, 2025. THE CANADIAN PRESS/Christinne Muschi

TORONTO — Former Hudson’s Bay employees are about to get some financial help.

An Ontario court has approved the creation of a hardship fund for former employees as well as payments to staff who were receiving long-term disability benefits.

The hardship fund is targeted at workers and retirees who have been having trouble paying expenses like rent, mortgages and utilities since the department store collapsed last year.

They’ll be able to apply for up to $9,600, and those with medical or other emergencies could be given up to $2,500 extra.

Under another agreement the court approved, almost 160 workers whose long-term disability benefits are ending will get a lump-sum termination payment.

Lawyers representing the employees say the vast majority of these workers have permanent disabilities and no alternative source of income, but the payment will likely be enough to help many until they are 65.

This report by The Canadian Press was first published Feb. 11, 2026.

Tara Deschamps, The Canadian Press