Shoppers browse at a Hudson's Bay store in Toronto on March 17.Christopher Katsarov/The Canadian Press
Canadian Tire Corp. Ltd. CTC-T will acquire the historic Hudson’s Bay stripe design that dates back to the 17th century, the retailer’s coat of arms and brand names, and other intellectual property tied to the faltering department store chain in a $30-million deal.
The agreement marks a significant moment for Canada’s oldest retailer, as it cedes ownership of the iconic designs that are deeply tied to its own corporate history, as well as the history of the country. And it ensures that another of Canada’s largest retailers will steward some of those brands and designs in the future.
“Canadian Tire and the Hudson’s Bay Company are among the nation’s longest-standing companies, with a combined Canadian heritage measured in centuries,” Canadian Tire chief executive officer Greg Hicks wrote in a news release on Thursday. “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.”
A sales process for Hudson’s Bay’s assets and operations drew 17 bids, according to court documents. Some of those bidders also participated in a separate process selling off the Bay’s store leases – indicating there was interest among potential buyers in owning retail operations that make use of Bay locations, as well as other assets that could include customer databases, the Bay brand name, and private labels such as Zellers and Distinctly Home. A total of 12 parties submitted bids for a total of 39 leases. Canadian Tire disclosed on Thursday that it is among the bidders for the leases.
The deal will allow Canadian Tire to sell items under these brands across its 1,700 Canadian Tire, Mark's, SportChek, Party City and Pro Hockey Life stores.
The Canadian Press
Canadian Tire has bought other brands in the past, as it has sought to expand the sales of private labels that the retailer owns, in addition to selling third-party name brands. Canadian Tire acquired the Woods camping gear line in 2014; Paderno kitchenware in 2017; and Sher-Wood Athletics Group’s hockey trademarks in 2018, among other deals.
“The Stripes will add beautifully to our portfolio of owned brands alongside other Canadian favourites 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,” Mr. Hicks wrote in Thursday’s release, calling the decision both “strategic” and “patriotic.”
In 2024, the company’s owned brands accounted for 37.5 per cent of its overall retail sales.
Hudson’s Bay has been looking for buyers for its business as it liquidates all 80 of its Bay stores across the country, as well as two Saks Fifth Avenue and 13 Saks OFF 5th locations the company operates in Canada.
The retailer was granted court protection from its creditors on March 7 under the Companies’ Creditors Arrangement Act. It disclosed that it had amassed $1.1-billion in debt.
Before the court filing, Hudson’s Bay had fallen behind on payments to suppliers and was unable to secure the financing it needed to continue operations amid mounting losses.
At first, Hudson’s Bay sought support for a restructuring plan that would have kept roughly half of its stores open, a solution that would have required concessions on rent and other financial contributions from landlords. After that plan was unsuccessful, the Bay began liquidating the majority of its stores, but was still pitching investors on a plan that would have preserved six stores. That plan would have required a buyer or investor to spend $82-million in the first year to turn around those stores, according to a confidential memo obtained by The Globe and Mail.
Then, acknowledging a “low probability” that a buyer would emerge for that six-store plan, Hudson’s Bay added those final stores to the liquidation. Those clearance sales are expected to be finished by the end of this month, and the store locations will be vacated by the end of June.
The Canadian Tire deal is subject to court approval. Earlier this week, lawyers for Hudson’s Bay acknowledged the sales process for the assets was nearing its conclusion. In a hearing at the Ontario Superior Court in Toronto on Tuesday, Ashley Taylor of Stikeman Elliott LLP said that the company would be back in court in two to three weeks to seek approval of one or more transactions.
The company expects the deal to close later this summer.
“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,” Mr. Hicks wrote, adding that the company will continue the brands’ heritage. “We are proud to steward these iconic brands into our – and their – next century.”
“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” Liz Rodbell, Hudson’s Bay’s President and CEO, wrote in a statement. “I have no doubt they will be strong stewards of the more than 350-year HBC legacy as they move our iconic brands forward.”