Hudson's Baycompany petitions court for endorsement of Canadian Tirefor acquisition of renowned trademarks.
Bringing a Legend to New Heights: Canadian Tire Acquires Hudson's Bay's Iconic Intellectual Property
Just two days post the cessation of all store operations, Hudson's Bay is seeking court approval for the sale of its intellectual property to another renowned Canadian company - Canadian Tire. This multi-million dollar deal could well turn a new chapter in the lifespan of these iconic brands.
The Superior Court of Justice is set to decide on the $30 million sale on Tuesday, if approved, Hudson's Bay's name, trademarks, coat of arms, and the iconic stripe design will officially be in Canadian Tire's possession.
To find buyers or investors for its retail business, Hudson's Bay had invited 407 parties to bid on its intellectual property and other assets. But unfortunately, none of the proposals provided a feasible means to keep any part of the business alive, thus marking the end of a glorious 355-year legacy.
Canadian Tire's bid stood out among the 17 proposals, all aiming for Hudson's Bay's intellectual property, as it offered the highest purchase price. It was the best offer among the lot!
Beyond the immaculate stripes and illustrious name, Canadian Tire will also acquire customer data and domain names from Hudson's Bay as part of the deal. However, the sale doesn't cover Hudson's Bay's art, artifacts, and archives.
Court approval is also sought for a joint venture involving 12 properties co-owned with RioCan to enter receivership. This move sets in motion the process for more than 9,000 employees to claim the money they are owed through the federal Wage Earner Protection Program (WEPP).
Initially, over 8,000 workers were released without severance with the final day of operations for Hudson's Bay's stores being Sunday. The remaining 1,000 staff are expected to follow suit in the coming months. The WEPP allows affected workers to receive a one-time payment of up to seven weeks of insurable earnings, with a maximum payout of $8,844.
It is essential to mention that no bids were made on the properties held in a joint venture formed in 2015 with RioCan holding a 22% stake. As a result, RioCan is seeking the appointment of FTI Consulting Canada as receiver to maximize recoveries for the benefit of these properties.
The joint venture involves 10 Hudson's Bay properties located in Montreal, Vancouver, Calgary, and Ottawa among other popular locations.
For Canadian Tire, this strategic acquisition is regarded as patriotic, enabling them to integrate iconic Canadian brands into their retail network. On the other hand, Hudson's Bay's CEO is thankful that the brand has found a new home with another heritage retailer, ensuring the continuation of its legacy. Canadian Tire plans to utilize these brands across its 1,700 shops that include SportChek, Party City, Mark’s, and Pro Hockey Life.
This sale signifies the end of Hudson's Bay's operations as a standalone retailer but preserves its brand legacy under Canadian Tire's stewardship, ensuring a fresh start for Hudson's Bay while maintaining its historical roots. 😊
(Enrichment Data* ### Details of the Sale * Value: Canadian Tire will purchase Hudson's Bay's intellectual property approximating 30.001 million Canadian dollars[1][2][3]. * Assets Included: The sale encompasses Hudson's Bay's colors, brand names, coat of arms, various trademarks, customer data, and domain names[1][3]. * Exclusions: The deal does not cover Hudson's Bay's art, artifacts, and archives[1][2].
- Job Losses: Most employees have already been laid off, with the remaining set to be laid off by June 8, and more job losses occurring post the closure of distribution centers on June 15[1].
- Future Operations: Under Canadian Tire's guidance, Hudson's Bay Company will effectively transition from being a traditional retailer[1].
- Strategic Acquisition: Canadian Tire views this acquisition as strategic and patriotic, as they integrate iconic Canadian brands into their retail network[3].
- Hudson's Bay Legacy: Hudson's Bay's CEO is appreciative that the brand has found a new home with another heritage retailer, ensuring the preservation of its legacy[2].
- Operational Changes: Canadian Tire plans to make use of the acquired brands across its 1,700 stores including SportChek, Party City, Mark’s, and Pro Hockey Life[3].)
Impact on Hudson's Bay and Canadian Tire
Impact on Employees
Court approval is sought for the $30 million sale of Hudson's Bay's intellectual property to Canadian Tire, which encompasses the brand's colors, brand names, coat of arms, various trademarks, customer data, and domain names. Yet, the deal does not cover Hudson's Bay's art, artifacts, and archives.
The sale signifies the end of Hudson's Bay's operations as a standalone retailer but preserves its brand legacy under Canadian Tire's stewardship. Canadian Tire views this acquisition as strategic and patriotic, as they integrate iconic Canadian brands into their retail network that includes SportChek, Party City, Mark's, and Pro Hockey Life.
Meanwhile, the Superior Court of Justice is set to decide on the sale on Tuesday. If approved, over 9,000 employees are expected to claim the money they are owed through the federal Wage Earner Protection Program (WEPP), as more than 8,000 workers were initially released without severance with the final day of operations for Hudson's Bay's stores being Sunday.
In the media, this acquisition has been portrayed as a new chapter in the lifespan of these iconic brands, with Hudson's Bay's CEO thankful that the brand has found a new home with another heritage retailer, ensuring the continuation of its legacy. The financial industry is also closely watching the impact this acquisition may have on Canadian Tire's business and retail industry.
