Nordstrom’s decision to close its Canadian stores will result in 643 job losses at its two B.C. locations, one in downtown Vancouver and the other in Langley.
The upscale U.S.-based retailer made the announcement on Thursday. In court filings, it says it has lost money every single year since it opened in Canada in 2014.
“The whole store is shocked,” Nordstrom employee Roy Jiang told CBC shortly after the news broke. “Even our manager is crying.”
Jiang works at the downtown Vancouver store, located on Robson St. in Pacific Centre mall. He says employees were notified via email and calls the situation “mind blowing.”
“It was so sudden,” he said. “All the people in the building are shook.”
WATCH | Nordstrom employees, shoppers shocked by store’s closure:
643 Vancouver employees to lose jobs as Nordstrom leaves Canada
22 hours ago
Duration 4:33
Nordstrom Inc. says it is winding down its Canadian operations and closing all 13 of its stores in the country, including in Vancouver where it opened with much fanfare in 2015, leaving its prominent Robson St. location empty.
More than 600 people work in the downtown store.
The Langley store — Nordstrom Rack — is at Willowbrook Shopping Centre.
Thursday’s announcement also took some customers shopping at the downtown Nordstrom by surprise. One was “terribly shocked” and another called it “a shame.”
Cadillac Fairview, which runs Pacific Centre, has not responded to requests for comment on the situation after first being asked on Thursday.
Downtown store opened in high-profile spot in 2015
The downtown Vancouver store takes up 230,000 square feet and three floors in Pacific Centre, making it one of the city’s more high-profile retail outlets.
Opened to much fanfare in September 2015, it was the company’s third Canadian location, after Calgary and Ottawa. Retail giants Eatons and Sears previously occupied the corner lot.
Nordstrom Pacific Centre on Robson St. in downtown Vancouver is one of 13 Nordstrom stores in Canada that will be closing. (CBC News)
Jobs originally posted for the Vancouver location included retail salespeople, nail technicians, bartenders, baristas, tailors, stylists, cleaners and a shoe shiner.
Across Canada, Nordstrom has about 2,500 employees in 13 locations. The company blames high costs, a lofty U.S. dollar, flat sales, the COVID-19 pandemic and a lack of brand awareness for its struggles in Canada.
Industry watcher expected company to ‘steer the course’
Speaking on CBC’s BC Today on Friday, retail advisor David Ian Gray said he started hearing rumours of a Nordstrom closure in Canada in mid-February, but that he was “as shocked as anybody else” by Thursday’s announcement.
“The Nordstrom family, they’re not reactive decision makers,” said Gray, founder of DIG360 Consulting in Vancouver.
“They’re very purposeful. I was aware of the financial issues they were facing, not simply [in] Canada but across all of their network, but I would have thought the rumours may have been part of a negotiating strategy to reduce rent or there was something else [going] on. I would have thought there was more of a plan to steer the course in Canada rather than retreat from Canada.”
WATCH | Nordstrom announces closure of Canada stores:
Nordstrom closing all stores in Canada
2 days ago
Duration 1:35
Nordstrom announces it will close all 13 of its stores across Canada. The company says it lost money every year since opening stores in Canada in 2014.
Gray says Nordstrom’s departure from Canada is “a continuation of a lot of turbulence that began before the pandemic.”
“The pandemic just decimated the fashion sector,” he said. “There are recoveries going on but it’s two steps forward and one step back.”
Canadian stores expected to close by end of June
Erik Nordstrom, CEO of the company that bears his name, reportedly told a conference call that Canadian employees would be treated with fairness and respect, and that a trust would be set up to help them as stores close.
Operations are expected to wrap up by the end of June.
For its Canadian stores, Nordstrom says it will “commence a liquidation sale, subject to court approval,” later this month.
Customers are no longer able to shop online through nordstrom.ca but the company says orders placed before March 2 will be fulfilled.
TORONTO – Magna International Inc. says it has launched a targeted review of its historical records in response to sexual assault charges against founder Frank Stronach.
Magna spokeswoman Tracy Fuerst says the review process is complicated because of the passage of time.
Fuerst says that if relevant information is found, the company, which is not facing any criminal or civil allegations, will follow a strict protocol to respect the legal rights of all and co-operate with authorities.
To date, the auto parts company’s internal document review has discovered one settlement involving a historical harassment allegation against Stronach and Magna Entertainment Corp. that had already been reported.
Stronach gave up control of Magna in 2010 and stepped down as chairman in 2012.
He faces charges including rape, attempted rape, indecent assault, forcible confinement and sexual assault in connection with alleged incidents that date as far back as 1977. Stronach has said he is not guilty and that he will fight the charges.
This report by The Canadian Press was first published Oct. 3, 2024.
CALGARY – Enbridge Inc. says it will spend about US$700 million to build new crude oil and natural gas pipelines in the U.S. Gulf of Mexico for the Kaskida development, operated by BP Exploration & Production Co.
The crude oil pipeline, named the Canyon Oil Pipeline System, will have a capacity of 200,000 barrels per day and originate in the Keathley Canyon area of the gulf.
It will deliver crude to the existing Green Canyon 19 platform, operated by Shell Pipeline Co. LP for ultimate delivery to the Louisiana market.
The natural gas pipeline, named the Canyon Gathering System, will have a capacity of 125 million cubic feet per day.
It will connect to Enbridge’s existing Magnolia Gas Gathering Pipeline.
The company says detailed design and procurement activities are expected to start early next year with the pipelines expected to be operational by 2029.
This report by The Canadian Press was first published Oct. 3, 2024.
CALGARY – TC Energy Corp. has completed its spinoff of South Bow Corp., its crude oil pipelines business, as an independent company.
The new company, which will be headquartered in Calgary with an office in Houston, will be led by Bevin Wirzba, formerly the executive vice-president for TC Energy’s natural gas and liquids pipelines business.
South Bow will run TC Energy’s crude oil pipelines business, including the critical Keystone pipeline system.
The move is the result of a strategic review in which the Calgary-based TC considered its options including the potential sale of the oil pipelines business.
Spinning off the oil pipelines business, which has long-term committed contracts with oil shippers, will give South Bow the chance to use its robust cash flows to pay down debt and enhance shareholder returns, while TC Energy will become a growth-oriented company focused on natural gas.
TC Energy — which has natural gas transportation infrastructure in Canada, the U.S., and Mexico — is bullish on the future of the commodity, in particular the potential for growth spurred by demand for liquefied natural gas (LNG).
TC Energy also has plans to look at new, low-carbon energy opportunities such as nuclear and pumped hydro energy storage.
The company has been under scrutiny by analysts and credit ratings for its significant debt load as well as for cost overruns on the Coastal GasLink pipeline project, which was completed in the fall of 2023.
TC Energy shareholders voted in favour of the spinoff of the crude pipelines business in a vote in June.
South Bow common shares were distributed Tuesday to TC Energy shareholders of record on Sept. 25. Shareholders received one South Bow common share for every five TC Energy common shares owned.
South Bow’s common shares are expected to start trading on the Toronto Stock Exchange on Wednesday under the ticker symbol SOBO. Trading on the New York Stock Exchange is expected to start on or about Oct. 8.
This report by The Canadian Press was first published Oct. 1, 2024.
