The 1670 royal charter signed by King Charles II establishing Hudson's Bay at the Manitoba Museum. The Thomson and Weston families have submitted a joint bid that see the charter shared by four institutions.Supplied/The Canadian Press
Two of Canada’s most prominent families have proposed an $18-million deal to jointly purchase the 355-year-old Hudson’s Bay royal charter – a document that played a pivotal role in the country’s history – for donation to a selection of institutions that will preserve it and keep it publicly accessible.
The Thomson and Weston families, who previously had submitted their own separate bids for the parchment, have now submitted a joint bid that, if successful, would see the charter shared by the Archives of Manitoba, the Manitoba Museum, the Canadian Museum of History and the Royal Ontario Museum.
In addition to the purchase price, the families would donate $5-million to support the preservation of the document and consultations with Indigenous groups and others as to how it should be presented.
The offer will act as the opening bid in an auction that will take place no later than Dec. 6, according to court documents filed on Friday.
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“I am immensely proud to witness a group of private and public entities collaborate to support the preservation of the Charter on behalf of all Canadians,” said David Thomson.
“The official home of the Charter will be in Manitoba, where it holds so many historic resonances. I welcome the commitment of its custodians to consult with First Nations, Inuit and Métis communities to foster an understanding of the significance of the Charter through the past and into the present and future.”
Galen G. Weston commented on the offer as well: “Our goal has always been to ensure this important Canadian artifact is preserved with care, shared with integrity, and made accessible to all Canadians,” he said.
“Working together in the national interest, this joint effort serves to do just that, with a shared commitment to consultation and the stewardship, sharing and interpretation of the Charter for present and future generations of Canadians.”
The document has been a subject of significant concern among government officials, Indigenous leaders, historians and cultural groups since April, when The Globe and Mail first reported that Hudson’s Bay was considering selling the charter to pay down its debts.
Hudson’s Bay was granted court protection from its creditors in early March, as it faced a financial crisis and carried more than $1-billion in debt. The company was unable to secure additional debt financing, or to find new investors for a plan to save even a handful of its department stores. The chain shut down all of its locations across Canada in early June.
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As it has wound down the business, the Bay liquidated its store inventory and has been selling off assets, including its intellectual property and its collection of art and artifacts, to generate funds to pay creditors.
The 1670 charter was set aside for a separate auction process. Then in July, the company changed that plan and instead sought court approval for a direct sale to the billionaire Weston family’s holding company, Wittington Investments Ltd.
Wittington’s $12.5-million bid included a plan to donate the parchment, which carries the wax seal of King Charles II, to the Canadian Museum of History. It also included an additional $1-million donation to the museum to support consultations with Indigenous groups and others to determine how the charter should be presented.
The deal was a surprise to potential bidders for the charter, since the advisory firm handling the sale, Reflect Advisors LLC, had told others that it would not be accepting offers prior to the sale. Wittington urged Reflect not to take the document to auction.
Then in August, Mr. Thomson signalled his interest in bidding for the charter, and his willingness to pay at least $15-million to donate it to the Archives of Manitoba – which already holds a vast trove of Hudson’s Bay records, bequeathed to the archives in 1994 – with an additional $2-million donation.
The offer came from Mr. Thomson’s personal family holding company, DKRT Family Corp. (The Woodbridge Co. Ltd., another holding company and primary investment vehicle for the Thomson family, owns The Globe.)
Amid added interest from other bidders, the company reverted to its plan for an auction, and went to court in late September to seek approval for how that sale would be conducted. But that proceeding was adjourned after a surprise late-night bid emerged just before the court hearing.
Who the surprise bidder was, and why it would further delay the auction, was not publicly explained until Friday, when court documents confirmed it was the joint Thomson-Weston bid.
“I must say I’m concerned, increasingly so, about the process,” Ontario Superior Court Justice Peter Osborne said during that Sept. 29 hearing.
“And I am going to keep this on the rails. The one thing, I think maybe the only thing, that all the parties agree on, is the importance and relevance of the royal charter to all Canadians and to various groups, including but not limited to certain Indigenous groups, who have expressed interest in this. So we are going to do this right, not fast.”
When the joint bid was first submitted, it offered $16-million for the charter, an amount that increased after talks with Hudson’s Bay, which has changed its name, and its advisers in the following weeks.
The company believes the joint bidders “were not permitted to submit a joint bid without the prior consent” of Hudson’s Bay and the court monitor overseeing the process, according to an affidavit sworn by Adam Zalev of Reflect on Friday. “The Joint Bidders dispute the Applicants’ interpretation of the agreements.”
The company is committed to “a robust auction process to determine whether a superior offer may be obtained,” the affidavit stated. Potential bidders have until a deadline of Nov. 28 to signal their interest in bidding.
The Thomson and Weston families consulted with other interested parties, according to court documents, and have the support of the billionaire Desmarais Family and Power Corporation of Canada, as well as from The Hennick Family Foundation – all of which have committed to providing more funding to the donees to support their consultations and work preserving the charter.
“While the Charter will be donated equally to the four Public Custodians, to honour the 300-year history between the Hudson’s Bay Company and the land that is now known as Manitoba, Manitoba will be designated as the Charter’s official home and it is envisioned as the site of the Charter’s first public exhibition after donation,” lawyers for Wittington wrote in a letter Friday describing the offer.
The court documents also included a letter of support from the National Centre for Truth and Reconciliation.
“The NCTR expresses its support for a solution that ensures Indigenous voices are fully included in these historic decisions,” the letter stated.
“The Centre is prepared to participate in, support and guide the consultation process, and sincerely looks forward to working alongside the four public custodians to ensure the future of the Charter contributes to a more truthful, respectful, and just shared history.”