Canada's Oldest Company Cuts!!

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  • LadyEye
    General & Forum Moderator

    • Jun 2006
    • 10526

    Canada's Oldest Company Cuts!!

    Hudson's Bay cuts 1,000 jobs in corporate restructuring
    7 hours ago

    Canada's oldest company Hudson's Bay Co. is cutting 1,000 jobs in Canada, or about five per cent of its full-time workforce, as part of a corporate restructuring to improve efficiency and lower operating costs.

    The Toronto-based retailer said Wednesday the cuts, as well as other streamlining moves, will save it about $150 million this year.

    "We believe this new structure will allow us to better compete during these challenging economic times and ensure our long term success," chief executive Jeff Sherman stated.

    "These changes allow us to be more responsive to customer needs and expectations while at the same time aggressively implement our business strategy in order to grow sales and earnings."

    Wednesday's streamlining announcement follows a restructuring announced last month that creates a shared services group designed to provide finance, IT, supply chain and logistics and central operations to all Hudson's Bay businesses in North America.

    The cuts also reflect a tough economic environment for North American retailers, who have been hurt by the recession in the United States and Canada and reduced consumer spending.

    Wednesday's streamlining is one of the first major moves made by Sherman to revitalize the company, an iconic Canadian retail brand that has generated sluggish returns for several years and faced cutthroat competition from big-box chains such as Wal-Mart Canada (NYSE:WMT).

    Sherman, who once was CEO of the Limited Brands chain, the retail giant behind Victoria's Secret, and at Bloomingdales, took over Hudson's Bay in 2008 after the company was sold to New York-based NRDC Equity Partners, the owner of Lord & Taylor and other retail companies.

    John Williams, senior partner at retail consultant JC Williams Group, said the job cut announcement is also likely a result of the disappointing holiday sales period.

    Williams also said the first quarter of the year is historically the worst in the industry.

    "Things were tough in November and December and it's going to remain that way for a period of time," he said.

    Williams said department stores are already being squeezed by big-box retailers such as Wal-Mart, but add to that a recession and it's not surprising to see cuts.

    "I don't think it will be a V-shaped turnaround either," said Williams. "There is too much going wrong in too many places in the economy."

    Hudson's Bay said the staff reductions affect five per cent of the company's full-time Canadian workforce, and will include both administrative positions in its new shared services group, as well as store positions.

    "Where stores have been affected, the changes will not impact customer service levels," the company said.

    Sherman said the restructuring will leave the retailer "better positioned to succeed in the long term."

    Sherman took the top job at Hudson's Bay last summer, replacing Rob Johnston, who stepped in earlier last year after the death of former owner Jerry Zucker, who bought HBC less than two years earlier.

    Zucker's widow sold the chain to the New York based retail investment group.

    The Hudson's Bay Co. was incorporated in 1670 and is the oldest commercial corporation in North America. It owns more than 600 The Bay, Zellers and Home Outfitters stores in Canada and employs about 60,000 people full-and part-time.

    The company's U.S. operations include Lord & Taylor, an upscale specialty retailer with 48 stores in nine states and Creative Design Studios.

    After the sale to NRDC, the new owners formed Hudson's Bay Trading Co., which is the umbrella firm that will cover both the Hudson's Bay Co. brands as well as Lord & Taylor and its entities.

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  • Collectors-info
    General

    • Feb 2006
    • 8703

    #2
    Re: Canada's Oldest Company Cuts!!

    There are so, so many names all over the world in trouble thanks in part to a bunch of useless bankers?
    It was on the news this morning in the UK that a large store in London called "Hamleys toy shop" is closing because what’s happening. Ok! We are all hearing of business going under, but many don’t have the history of this shop, that can never be replaced. Hamleys was just coming up to being a 250 year old business, with a store in central London for just over 125 years. This was not just a toy shop; it was more of a day out for the whole family. There are great, great grandparents still with us & millions of kids will remember the store with a lot of affection & good memories.
    Regards Chris.

    Collectables, Collecting, collectors-info.com

    www.chrismorris.co.uk

    House build project

    Comment

    • darklight
      Brigadier General

      • Jul 2006
      • 1309

      #3
      Re: Canada's Oldest Company Cuts!!

      Damn..
      I still cant believe we lost Woolworths :( I will never get over that!

      Comment

      • LadyEye
        General & Forum Moderator

        • Jun 2006
        • 10526

        #4
        Re: Canada's Oldest Company Cuts!!

        Originally posted by Collectors-info View Post
        Ok! We are all hearing of business going under, but many don’t have the history of this shop, that can never be replaced. Hamleys was just coming up to being a 250 year old business, with a store in central London for just over 125 years.
        Yes, and that makes it so much worse imo, preserving heritage means much more imo .. it's a shame, makes me think of that movie, "You've Got Mail"

        Ya Teri, I was there when all that went down, but we lost Woolworths years ago .. WalMart is the big playa here, and not sure, but I hear they do not pay for a single item until after it checks out through the cash registers.

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        Comment

        • SAman
          Major General

          • Mar 2007
          • 2009

          #5
          Re: Canada's Oldest Company Cuts!!

          We are seeing the same down here, with all the companies that have corporate offices here. They are cutting back by the thousands. i just find it a little funny that they all say that this will stream line the company and and make it able to better serve the customers. The cushy time is over and now maybe some of these companies can get rid of the extras that didn't do all that much and sill pull in those 6 figure salaries????
          Mike

          Any excuse for non performance only weakens the charactor

          In God We Trust

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