Canadian Tire to buy Hudson’s Bay intellectual property, brand assets
Hudson’s Bay Company is not disappearing after all — at least not entirely.
The retailer, which filed for the Canadian equivalent of bankruptcy in March and is the process of liquidating its stores, has entered into a agreement to sell its intellectual property portfolio to Canadian Tire Corp. — one of Canada’s largest retailers — for approximately $30 million (Canadian dollars).
The deal includes the company's signature multi-colored stripe design (HBC Stripes) which dates back to 1779, and its coat of arms, along with company names (including The Bay), logos, designs and brand trademarks. It does not include Hudson's Bay art and artifacts which will be subject to a separate court-approved process.
Separately, Canadian Tire has bid for a handful of Hudson’s Bay lease locations. (Canadian Tire operates nearly 1,700 retail stores and gasoline outlets across Canada under a variety of banners, including Party City and PartSource; apparel-focused Mark's and SportChek; Hockey Experts; Sports Experts; Canadian Tire and more.)
“Canadian Tire and the Hudson's Bay Company are among the nation's longest-standing companies, with a combined Canadian heritage measured in centuries,” said Canadian Tire president and CEO Greg Hicks. “Some things are just meant to stay Canadian and we are honored to welcome many of HBC's leading brands — including the iconic HBC coat of arms and the Stripes — into our Canadian Tire Corp.”
The company intends to roll out select Bay-branded products across its locations.
“This choice feels as strategic as it feels patriotic. It builds on our generational connection to life in Canada and it fits our new True North strategy,” added Hicks. “The Stripes will add beautifully to our portfolio of owned brands alongside other Canadian favorites that we have fostered and grown, and The Bay and its brands have long been known for their strength in categories that our customers will seek in our stores and online.”
The agreement is the result of the previously announced sale and investment solicitation process approved by the Ontario Superior Court of Justice where Hudson’s Bay sought sale proposals and investment proposals from qualified bidders in respect of the company’s property and business.
Hudson’s Bay filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act in March, citing, among other things, trade tensions between Canada and the United States and a drop in downtown traffic. It announced plans to liquidate the majority of its stores, with a handful excluded from the initial list as it holds out hope for a last-minute buyer.
[READ MORE: Hudson’s Bay to liquidate all remaining stores]
“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” said Liz Rodbell, president and CEO, Hudson’s Bay. “I have no doubt they will be strong stewards of the more than 350-year HBC legacy as they move our iconic brands forward.”
The agreement is subject to court-approval and other customary terms and conditions, and is expected to close in the summer of 2025.
Hudson’s Bay Co. operates 80 stores under the Hudson’s Bay banner as well as a e-commerce site. Through a licensing agreement, it also operates three Saks Fifth Avenue and 13 Saks Off 5th stores in Canada.
