Hudson’s Bay vs. Sears Canada: What We Can Learn from the Last Retail Giant’s Collapse

If you worked at Sears Canada, you already know how devastating a retail bankruptcy can be. If you didn’t? Well, you’re about to get a crash course in why Hudson’s Bay workers need to act fast when it comes to their pensions.

Sears Canada was once a retail powerhouse—just like Hudson’s Bay. But when it collapsed in 2017, thousands of employees were left scrambling. Stores shut down, jobs disappeared, and worst of all? Many workers saw their pensions slashed.

Now, Hudson’s Bay is following a similar trajectory. They’ve filed for creditor protection, are burdened with over $1.2 billion in debt, and could close half of their 88 stores. If you work for Hudson’s Bay and have a pension, now is the time to learn from what went wrong at Sears—before it’s too late.

What Happened to Sears Canada Workers?

When Sears Canada filed for bankruptcy, employees faced a nightmare scenario:

• Over 12,000+ jobs were wiped out. Workers were let go with little warning. Many got no severance pay due to the bankruptcy.
• Pension benefits were cut. Sears had an underfunded pension plan, meaning there wasn’t enough money to cover all promised retirement benefits.
• Health and life insurance for retirees disappeared. Thousands lost their benefits overnight.

For those who had Defined Benefit (DB) pensions, the biggest issue was that Sears didn’t have enough money set aside to cover all future payouts. Many retirees saw their monthly pension payments cut by 20% or more—with no way to fight back.

Sound familiar?

Why Hudson’s Bay Employees Need to Act Fast

Hudson’s Bay hasn’t officially announced store closures or layoffs yet, but if history tells us anything, it’s only a matter of time. And if you have a pension, you need to be prepared.

Here’s what you need to consider right now:

• Could your pension be underfunded? Hudson’s Bay has massive debt and hasn’t been paying rent at some locations. If money is tight, pension obligations could be at risk.
• Will they change pension rules? In many corporate restructurings, companies freeze pension benefits or alter payout structures to reduce costs.
• Do you have the option to take a lump sum? If you’re eligible for a commuted value payout, taking control of your pension before changes happen could be a smart move.

Waiting too long could mean fewer options and less money in your pocket. If you’ve been affected by Hudson’s Bay’s restructuring or are worried about your pension, don’t wait. Book a free consultation today.

What Can You Do to Protect Your Pension?

If you have a Defined Benefit pension with Hudson’s Bay, you may have two choices:

1. Stay in the plan and hope for the best. If the company survives and keeps the pension funded, you’ll get your promised retirement income—though nothing is guaranteed.
2. Take a commuted value payout. This option lets you take your pension as a lump sum and move it into a Locked-In Retirement Account (LIRA) or a private annuity with an insurance company (Copycat Annuity)—protecting it from company instability.

For many Sears workers, not having this choice meant watching their pensions shrink as the company collapsed. Hudson’s Bay employees still have time to avoid the same fate—but action is key.

Book a Free Consultation—Before It’s Too Late

At Pension Solutions Canada, we specialize in helping workers just like you navigate pension decisions during layoffs and company shutdowns.

As a financial advisor who works exclusively with Ontario residents, I can help you:

• Understand your pension options and avoid costly mistakes
  Compare commuted value vs. staying in the pension
  Transfer your pension tax-efficiently
  Lock in your retirement income with a Copycat Annuity

Don’t wait until decisions are made for you—take control of your pension now.

If you’ve been affected by Hudson’s Bay’s restructuring or are worried about your pension, don’t wait. Book a free consultation today.