Hudson’s Bay Co. ULC has signed an agreement to sell its intellectual property, which includes HBC Stripes and other brand labels, Canadian Tire Corp. for around $ 30 million, as part of its effort to pay around $ 1 billion to its creditors.
The agreement, which was announced on Thursday night, must be approved by an Ontario court and is expected to be completed in summer, HBC said.
“We are grateful that the HBC brand has found a home with another patrimonial retailer that encapsulates the unique and authentic Canadian experience,” said Liz Rodbell, executive director of HBC, in a statement on Thursday. “I have no doubt that they will be strong administrators of the HBC legacy of more than 350 years as our iconic brands advance.”
In a separate statement, the Canadian Tire CEO, Greg Hicks, said the “choice” of buying the intellectual property of HBC was “strategic” and patriotic.
“Some things are destined to stay Canadians,” he said. “It is discouraging to witness the last days of another great Canadian retailer, and although the circumstances are unfortunate, we are proud to intervene for customers. Ultimately, customers are in the center of everything we do.”
He said that the stripes “would add wonderfully” to the portfolio of Canadian Tire and that the other brands have been “known by their strength” and Canadian Tire customers.
The agreement is part of HBC’s efforts to raise enough money to pay their creditors. In addition to seeking to sell its intellectual property, it is also in the process of liquidating all its stores, monetizing its leases and selling its artifacts, which includes the historical letter, a document that gave the company exclusive commercial rights over a part of Canada in 1670.
The oldest department stores in Canada went to court on March 7 to obtain an order that would protect her from her creditors, since she struggled to pay their fees to the owners, suppliers and service providers. He took the step after an owner locked him from a store in Sydney, NS, and a sheriff team tried to confiscate the merchandise of a store at the Sherway Gardens shopping center in Toronto.
The measure would be supposed to provide the company, which fought to deal with the change to online purchases, with “breathing space”, since it sought financing. However, that plan did not work, since commercial tensions between the United States and Canada led possible financial financial ones, he said.
HBC said previously that he had received offers from 17 parts for the company’s intellectual property.
Although the company did not declare the name of the bidders, Urbano Corp., an investment firm based in Toronto with assets worth approximately $ 500 million, in April he said that he had made an offer to buy the HBC brand and the Royal Charter.
“Canadian Tire and Hudson’s Bay Company are among the oldest companies in the country, with a combined Canadian heritage measured in centuries,” said Hicks. “We have the honor of welcoming many of the leading brands of HBC, including the iconic escape of HBC and the stripes, in our family of Canadian tires.”
In addition to the IP, Canadian Tire has also offered for a handful of lease, the company said.
