The retail complex and adjoining 35-storey office tower are owned by Brookfield Properties.
HBC says the store’s proximity just 2.5 kilometres from its flagship location on Queen Street allows the company to optimize its real estate portfolio.
The company has 86 locations in seven Canadian provinces.
Spokeswoman Tiffany Bourre says it will treat affected employees with “respect and fairness through this process.”
“All eligible associates will receive appropriate employment separation packages and transfer opportunities will be explored where feasible,” she wrote in an email.