Hudson’s Bay, Canada’s most iconic department store, is done as we know it, experts say.Ìý
On Thursday, Canadian Tire announced that it was purchasing Hudson’s Bay’sÌýintellectual property for $30 million, including its name, logo and iconic multicoloured stripes. The move effectively ends any lingering hopes that a white knight would come in and rescue the famous retailer’s brick and mortar stores.Ìý
“The department store, as we know it is, is gone,” said Jenna Jacobson, associate professor of retail atÌýº£½ÇÉçÇø¹ÙÍøMetropolitan University’s Ted Rogers School of Retail Management.
Canada's oldest retailer, Hudson's Bay is selling its brand name, iconic stripes motif and other trademarks to another nationally known name: Canadian Tire. The deal is worth $30 million and 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. (May 15, 2025 / The Canadian Press)
Unable to pay its bills, Hudson’s Bay filed for creditor protection in early March, and soon began liquidating its stores.Ìý
The Canadian Tire Corporation will get the the Bay’s full intellectual property “portfolio” including the centuries-old retailer’sÌýname, coat of arms, logos, and designs forÌý$30 million, the company . It was the winning bid out of 17, a move Canadian Tire CEOÌýGreg Hicks called both “strategic” and “patriotic” in the press release.
The agreement is subject to court approval and other customary terms and conditions, and is expected to close this summer. It will also allow the company toÌýsell products under the Hudson’s Bay banner.
Canadian Tire says it has separately bid for “a handful of lease locations.”
“I see almost no chance that the Hudson’s Bay company emerges out of this as a store,”Ìýsaid David Ian Gray, aÌýretail strategist. “I have trouble seeing the business case.”
He likens the move to a sports team picking up a few players who still have some potential, but who have seen better days, at a discounted price.Ìý
“TheÌýtraditionalÌýdepartmentÌýstoreÌýformatÌýthatÌýthe BayÌýwasÌýoperating isÌýsoÌýarchaic, it’s longÌýpastÌýas itsÌýbestÌýbeforeÌýdate,” he added.Ìý
Carl Boutet, chief strategist of Studio Rx, a retail strategy firm, said in an email that he suspects Canadian Tire will use Hudson’s BayÌýIP for core merchandise lines like towels. If anyone else wanted to revive any of the HBC retail brand, they would need to license the rights from Canadian Tire.
The sale allows Canadian Tire to lean into the brand nostalgia, and for Canadians to keep their emotional connection to the 355-year-old company, saidÌýJacobson.
But unless Canadian TireÌýwins the leasing bid and decides to carry on with the department stores, which is unlikely,Ìýit’s “very much an end to the Hudson’s Bay as we know it, as a department store,” Jacobson added.Ìý
“It’s a big loss for the Canadian retail landscape, and it’s going to continue to have ripple effects as we figure out what is going to be happening with the massive physical footprints of these stores, because there’s not many players that can adopt those kind of a spaces,” she said.Ìý
Gray said it depends where the properties are. Some may be “chopped up” into smaller retail outlets, while othersÌýmay “sit dark for a while,” especially in smaller markets.
He said the deal is a good move for Canadian Tire, but notes that not everyone shares in the nostalgia of the Bay. Gen Zs grew up as the stores started to decline.
“Not everyone’s going to flock to it,” he said. “Part of what they’re going to have to do is retell the story again.”
Asked about the future of the stores now that the IP has been snapped up, Tiffany Bourré, VP, Corporate Communications and Heritage for Hudson’s Bay, said in an email the brand agreement “is not part of the lease monetization process, which is still underway.”
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