Description: The Hudson’s Bay Company, Canada’s oldest company, has announced the permanent layoff of 600 employees. With the pandemic’s negative effect on traditional retailers, and with half of its stores shuttered for now, the Bay appears to have taken this move to reduce costs. One thing that concerns HBC is that big box retailers – its competitors on certain lines of merchandise – are allowed to remain open while the Bay has to close some of its stores.
Date: January 30, 2021
1) What do you think of the rules that force some retailers to remain closed during the pandemic while those selling groceries (along with non-essential items) are allowed to remain open?
2) The article contains a discussion from an employment lawyer noting that the terminated employees may have to be compensated for “payment in lieu of notice.” Research this topic to see what this means and discuss how HBC might have to account for it.
3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, we find a reference to HBC’s longevity on page 11-4. How long has the company been in business? Can you find examples of any other Canadian companies that are close?