Hudson’s Bay Co. ULC has entered into an agreement to sell its intellectual property, which includes the HBC stripes and other brand labels, to Canadian Tire Corp. for about $30 million, as part of its effort to pay back about $1 billion to its creditors.
The deal, which was announced on Thursday evening, has to be approved by an Ontario court and is expected to be completed by summer, HBC said.
“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” Liz Rodbell, HBC’s chief executive, said in a statement on Thursday. “I have no doubt they will be strong stewards of the more than 350-year HBC legacy as they move our iconic brands forward.”
In a separate statement, Canadian Tire CEO Greg Hicks said that the “choice” to buy HBC’s intellectual property was “strategic” as well as patriotic.
“Some things are just meant to stay Canadian,” he said. “It’s disheartening to witness the final days of another great Canadian retailer, and while the circumstances are unfortunate, we’re proud to step in for customers. Ultimately, customers are at the core of all we do.”
He said that the Stripes would “add beautifully” to Canadian Tire’s portfolio and that the other brands have long been “known for their strength” and would be sought after by Canadian Tire’s customers.
The agreement is part of HBC’s efforts to raise enough money to pay back its creditors. Aside from looking to sell its intellectual property, it is also in the process of liquidating all of its stores, monetizing its leases and selling its artifacts, which includes the historical charter, a document that gave the company exclusive trading rights over a portion of Canada in 1670.
Canada’s oldest department store went to court on March 7 to get an order that would protect it from its creditors as it struggled to pay its dues to landlords, vendors and service providers. It took the step after a landlord locked it out of a store in Sydney, N.S., and a team of bailiffs attempted to seize merchandise from a store in Toronto’s Sherway Gardens mall.
The move was supposed to provide the company, which struggled to cope with the shift to online shopping, with “breathing room” as it looked for financing. That plan, however, didn’t work out, as trade tensions between the United States and Canada pushed potential financiers to the sidelines, it said.
HBC previously said that it had received bids from 17 parties for either the company’s intellectual property.
While the company did not state the name of the bidders, Urbana Corp., a Toronto-based investment firm with about $500-million worth of assets, in April said it had placed a bid to purchase HBC’s brand name and the Royal Charter.
“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 Hicks. “ 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.”
Aside from the IP, Canadian Tire has also bid on a handful of lease locations, the company said.
Canadian Tire buying Hudson's Bay stripes and brand name for $30M: 'Meant to stay Canadian'
2025-05-15 23:49:03
