Hudson’s Bay is back from the brink, thanks to Canadian Tire.
Canadian Tire announced Thursday that it would buy the company’s intellectual property for $30 million, including its iconic multicoloured stripes motif, coat of arms, and other brand trademarks.
Though the downfall of Hudson’s Bay was “disheartening to witness,” said Greg Hicks, CEO of Canadian Tire, the proposed sale is both “strategic” and “patriotic.”
“Some things are just meant to stay Canadian and we are honoured to welcome many of HBC’s leading brands — including the iconic HBC coat of arms and the Stripes — into our Canadian Tire family,” Hicks said.
Of the 17 bids presented, Canadian Tire was the winner. In addition to intellectual property, the purchase also includes a “handful of lease locations.”
The sale will also include discount brand Zellers and apparel line Hudson North, as well as houseware brands Gluckstein and Distinctly Home, according a source who could not be named as they were unauthorized to speak about the sale.
The sale is still pending court approval.
The purchase comes after Hudson’s Bay filed creditor protection in March, stating that it could not pay its bills due to lower downtown traffic, a slower recovery from the pandemic, and the ongoing trade war with the U.S.
The proposed handover will preserve, at least in part, the legacy of the 355-year-old company, originally founded in 1670 as a fur-trading business. In its heyday, the company managed most of the country’s land, economy and Indigenous relations.
It is unclear how Canadian Tire plans to use Hudson’s Bay and its branding.
Hicks said on a recent earnings call that purchasing the entirety of the Bay’s operations was “just not a good fit for us right now.”
The Bay is also seeking owners for the 4,400 pieces of historic art and artifacts, which will likely be sold through an auction run by Heffel Gallery, a Toronto-based auction house.
This is a developing story.
With files from The Canadian Press
