Imagine losing your job, your income, and your financial stability overnight. That’s the harsh reality thousands of former Hudson’s Bay employees faced when Canada’s oldest department store collapsed last year. But here’s where it gets even more heartbreaking: many of these workers, already struggling to pay bills and cover medical expenses, were also stripped of their long-term disability benefits. Now, their lawyers are fighting back, urging the Ontario Superior Court to approve a lifeline—a hardship fund and a termination payment agreement—to help these vulnerable individuals regain some semblance of security. And this is the part most people miss: the proposed fund could provide one-time payments of up to $9,600, with an additional $2,500 for emergencies, funded by a mix of trust funds and reserves tied to the former Zellers brand. But here’s the controversial twist: while the move aims to support those in dire need, it raises questions about corporate responsibility and whether companies should be better prepared to protect their employees during insolvency. Should businesses set aside more robust safety nets for workers, or is this a fair solution given the circumstances? The court’s decision could set a precedent for how we handle employee welfare in future corporate collapses. What do you think—is this enough, or should more be done? Let’s discuss in the comments. Here’s the full story: Lawyers from Ursel Phillips Fellows Hopkinson LLP filed a motion this Wednesday, urging the court to greenlight a hardship fund for ex-Hudson’s Bay workers and retirees who’ve been grappling with rent, mortgages, utilities, car loans, and medical bills since the store’s downfall. The fund, if approved, would draw from a Zellers health and welfare trust ($9.9 million), an HBC reserve fund ($1.6 million), and $250,000 currently held by the department store. Alongside this, the lawyers are pushing for a lump-sum termination payment for former employees whose long-term disability benefits were abruptly suspended last June. This payment, negotiated by the law firm, is designed to provide financial stability until recipients turn 65, offering them time to reorganize their lives. ‘This agreement will provide significant assistance for some of the most vulnerable employees affected by this insolvency,’ said lawyer Susan Ursel, highlighting the plight of disabled workers who’ve been unable to find alternative employment. When Hudson’s Bay filed for creditor protection and shuttered its 96 stores and four distribution centers last year, it left 9,364 employees in limbo. Today, only eight remain as the company continues to unwind through court proceedings. Since the collapse, workers have lost not just their jobs but also termination pay, severance, parental leave top-ups, and other benefits. Approximately 188 employees and retirees were covered by long-term disability plans administered by Manulife, funded through HBC’s general revenues. This case isn’t just about numbers—it’s about real people whose lives have been upended. But here’s the question that lingers: Could this have been prevented with better corporate planning, or is this the inevitable fallout of a struggling retail industry? Share your thoughts below. This report by The Canadian Press was first published Feb. 4, 2026. Tara Deschamps, The Canadian Press.
