TORONTO, May 27 (Reuters) - Canada's Hudson's Bay

Company plans to lay off 8,347 employees, or 89% of its

workforce, by Sunday when it will conclude its liquidation sale

and shut all stores, according to documents published late on

Monday.

Hudson's Bay, Canada's oldest retail chain, has been part of

the country's landscape and identity for 355 years, anchoring

malls from coast to coast.

Founded in 1670, the Bay's brick-and-mortar department

stores are following similar retail businesses struggling with

declining foot traffic and competing with online commerce.

The layoffs follow rising joblessness in Canada.

Unemployment hit 6.9% in April, the highest since November, as

U.S. tariffs hit the export-dependent economy.

In March, Hudson's Bay announced plans to undergo a full

liquidation of its stores unless an alternative solution could

be found, after initiating restructuring proceedings earlier in

the month.

Of the remaining 1,017 employees, 899 are expected to be cut

around June 15 when distribution centres are anticipated to

close.

The last 118 employees will assist with winding up the

company under Canada's Companies' Creditors Arrangement Act.

Prior to the liquidation, Hudson's Bay employed 9,634 people

in its 96 stores, four distribution centres and head office,

according to the documents.

In 2018, Sears Canada's closing led to around 12,000 job

losses at that retailer.

Hudson's Bay's brand assets, including its nationally

recognizable coat of arms and stripes were purchased by Canadian

Tire Corporation ( CDNTF ) for $30 million, Canadian Tire ( CDNTF ) said

this month.