Hudson’s Bay Co. will live on in some fashion, and what form it takes will be solely up to Canadian Tire.
On Tuesday, the beleaguered department store got court approval to sell its intellectual property, including its iconic multicoloured stripes motif, to Canadian Tire for $30 million.
Bankrupt Hudson’s Bay Co. will use the cash to pay some of its debts before the 355-year-old retailer disappears entirely. On Sunday, the company wrapped up liquidation sales and closed its remaining 96 Bay and Saks-branded stores to the public.
As part of the $30-million deal, Canadian Tire will take ownership of not only the Hudson’s Bay stripes, but also its company names and other trademarks, such as its historic coat of arms symbol.
The big box retailer will also get all of the Bay’s customer data, including personal information, and domain names for its websites, court documents have shown.
The deal excludes the storied company’s art, artifacts and archives, as well as any of its more than 9,000 employees, most of whom have already been laid off.
As of June 1, 8,300 employees will be laid off. Once the company’s distribution centres close on June 15, an additional 899 employees will also be let go.
In March, indebted HBC was granted creditor protection by Ontario Superior Court, putting its assets up for sale. Seventeen parties submitted bids for the retailer’s intellectual property.
“The Canadian Tire transaction, among other things, provides for the highest purchase price of any bid received … and therefore provides the greatest value,” stated a court document filed on May 29.
Canadian Tire, which has more than 1,700 retail locations across the country, says it has also submitted a bid for “a handful” of Hudson’s Bay’s lease locations. According to court records, HBC has received 12 bids for 39 of its leases.
Last month, the Hudson’s Bay announced it reached a deal to sell 28 lease locations in Ontario, Alberta and British Columbia to Ruby Liu Commercial Investment Corp. The company is indirectly controlled by B.C. mall owner, Ruby Liu.
Liu plans to launch “a new modern department store concept in Canada,” Hudson’s Bay said in a statement.
The retailer added that the deal still needs approval from both the court and the landlords controlling the 28 leases. “There can be no assurances that the conditions to closing will be satisfied,” stated HBC.
