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The sale is still pending court approval but is expected to close sometime this summer. The agreement is subject to other customary terms and conditions, the Bay noted in a news release.Ìý

Though the downfall of Hudson’s Bay was “disheartening to witness,” Greg Hicks, CEO of Canadian Tire, said in a news release, the proposed sale is both “strategic” and “patriotic.”Ìý

“Some things are just meant to stay Canadian and we are honoured to welcome many of HBC’s leading brandsÌý— including the iconic HBC coat of arms and the StripesÌý— into our Canadian Tire family,” Hicks said.

“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” said Liz Rodbell, president and CEO of Hudson’s Bay, in a news release. Rodbell added she believes Canadian Tire will be “strong stewards” of the HBC brand.Ìý

The deal allows products under the HBC banner to be sold by Canadian Tire, which also owns SportChek, Party City, Mark’s and Pro Hockey Life, at their 1,700 stores.Ìý

Of the 17 bids presented, Canadian Tire was the winner. The company also has put out a bid on a “handful of lease locations.”Ìý

The 17 bids were submitted through a court-supervised process called the Sales and Investment Solicitation Process (SISP), which aims to help the company find buyers or investors who could keep parts of Hudson’s Bay running and preserve the brand.

When Hudson’s Bay started soliciting buyers for its brands, companies could seek to rebuild the business as a modern department store or just pick up and reimagine its brands.

Adam Zalev, managing director at Bay financial adviser Reflect Advisors, said “numerous parties” were interested in the possibilities that Hudson’s Bay’s assets offered.

The proposed sale will also include discount brand Zellers and apparel line Hudson North, as well as houseware brands Gluckstein and Distinctly Home, according a source who could not be named as they were unauthorized to speak about the sale.Ìý

“I think Canadian Tire’s purchase of Hudson’s Bay’s intellectual property is good news,” said retail analyst Bruce Winder, in an email. “We get to keep this storied brand in Canada and will have continuous supply of four-striped products.”

He added that the companies are a natural match, given their shared heritage and Canadian Tire’s strength in the home and outdoor categories. “In my opinion, the Hudson’s Bay brand has line-extension possibilities into other categories as well, including footwear and apparel, as well as additional home, backyard and outdoor recreation categories over time.”

Canadian Tire is a “natural acquirer” of the Bay’s IP, said Carl Boutet, chief strategist of Studio Rx, a retail strategy firm, in an email. “CTC seems like a natural acquirer of HBC IP, especially as they will have near immediate opportunity to leverage it’s equity with rapid merchandising and go-to market capabilities.”

The purchase comes after Hudson’s Bay filed creditor protection in March, stating that it could not pay its bills due to lower downtown traffic, a slower recovery from the pandemic, and the ongoing trade war with the U.S.

Unable to secure funding to keep its 80 Bay stores and 16 others under the Saks banners alive, it started liquidating the shops and searching for a way to avoid the complete death of its brands.Ìý

The proposed handover will preserve, at least in part, the legacy of the 355-year-old company, originally founded in 1670 as a fur-trading business. In its heyday, the company managed most of the country’s land, economy and Indigenous relations.Ìý

It is unclear how Canadian Tire plans to use Hudson’s Bay and its branding.

“For Canadians concerned about the heritage aspect of the brand elements, this is one of the better scenarios as it returns the visual representation of Hudson Bay Company to Canada, better yet, in the hands of a proven brand owner and operator who I think will respect the history,” said David Gray, principal at DIG360, a retail consultancy, in an email.Ìý

Gray said he suspects that there will not be a “rebirth” of Bay stores in the future.

Canadian Tire will benefit from Gluckstein Home’s name recognition, Gray said, and the $30-million purchase price which he calls a “deep discount,” adding that, “There is no downside for (Canadian Tire).”Ìý

Hicks said on a recent earnings call that purchasing the entirety of the Bay’s operations was “just not a good fit for us right now.”Ìý

The Bay is also seeking owners for more than 4,400 pieces of historic art and artifacts, which will likely be sold through an auction run by Heffel Gallery, a Toronto-based auction house.

The 1,700 pieces of art and more than 2,700 artifacts include the 1670 charter document that paved the way for the company’s founding.Ìý

The plan to auction off these historic artifacts has drawn criticism from Indigenous communities and governments, who worry the items could end up in the hands of private buyers.

In response to their demands, Hudson’s Bay has created a “comprehensive” digital catalogue of the art collection and allowed interested parties to view it under a nondisclosure agreement (NDA).

With files from Estella Ren and The Canadian Press