A Zellers store with a "store closing" sign prior to becoming a Target

Hudson’s Bay Co. to close most of its remaining 64 Zellers stores

The Hudson’s Bay Co. says it will close most of its 64 remaining Zellers Inc. stores in Canada that aren’t being converted to Target stores, affecting up to 6,400 jobs.

A spokeswoman for Hudson’s Bay Co. said Thursday the Zellers parent company has been contemplating what to do with the brand since last year, when it sold the majority of the leases for the discount stores to Target Corp.

“After a lengthy review and numerous discussions with various parties it became apparent that continuing to operate the Zellers banner in its current form was not viable, particularly given the geographic footprint of the remaining locations,” said spokeswoman Tiffany Bourre.

Most of the remaining stores will be closed by March 2013, the company said.

But Bourre said the company hasn’t ruled out the possibility of maintaining some of the store locations and opening them under another retail banner.

Bourre said that Zellers is “considering options” for certain locations, including “rebranding some stores” – a determination that has yet to be made.

It did not provide any indications as to which stores, or how many, would remain open.

The company said it operates 64 stores that were not acquired by Target, or were already slated for closure. An average Zellers has about 100 employees.

A spokeswoman for Walmart Canada wouldn’t comment on whether Canada’s largest retailer is interested in acquiring any of the locations. Target Corp. could not immediately be reached for comment.

Target plans to open 125 to 135 stores in Canada. It has purchased the leasehold interests of 189 sites currently operated by Zellers Inc. and it says about $10 million to $11 million will be invested to remodel each facility.

Brands Articles

Reebok pushes toughness with ‘Be More Human’

Campaign delivers newly defined brand focus to consumers

Stone Canoe slings Singapore
to U.S. travelers

A new online campaign is 'very very' eager to turn stopovers into vacations

Kill the Goose,
Kill the Golden Egg (Column)

Tony Chapman says social media is ruining the spectacle of the Super Bowl ad

Campbell contest wants Canadians to flip their lids

New contest will have shoppers looking under their lids to win prizes

Hall of Legends 2015:
Luc Beauregard

Valérie Beauregard on her father's influence and legacy as a king of PR

Hall of Legends 2015:
Stephen Graham

A global leader in moving brands through a crisis

Canadians flock to YouTube to view ads ahead of Super Bowl

Plus, see which Super Bowl spots are trending globally

Uniqlo’s blend-in brand well-poised to win market share

A bit of unfamiliarity goes a long way in managing expectations

A by-the-numbers look at #BellLetsTalk

The results from Bell's 2015 mental health campaign blow away previous years