Glimmers of hope as deadlines near for Hudson’s Bay

As the Bay starts liquidating its remaining stores, a judge granted the historic retailer permission to move forward with an auction sale of store artifacts.

TORONTO — The clock is ticking down on two deadlines that may determine the fate of Hudson’s Bay.

Anyone interested in buying Canada’s oldest company or assets like the rights to its iconic Stripes brand has until Wednesday at 5 p.m. to submit binding proposals. Those wanting to take on leases held by the 355-year-old department store chain or its sister Saks businesses must make binding bids by Thursday.

Both processes began after Hudson’s Bay filed for creditor protection in March, saying the impacts of the COVID-19 pandemic, reduced downtown traffic and an intensifying tariff war were causing significant financial difficulties.

The now-liquidating company thought putting itself and its leases up for sale would uncover a route to survival or, at the very least, a new home for its most prized possessions.

Hudson’s Bay and those overseeing the sales did not say whether any suitors have made a formal pitch for the business or its non-lease assets. However, Adam Zalev, managing director at Bay financial adviser Reflect Advisors, said there has been “a high level of interest.”

A source with knowledge of the process, who was not authorized to speak on the matter, said that a strong mix of recognizable North American businesses, together with financial partners have expressed interest.

Toronto investment manager Urbana Corp. made an offer for Hudson’s Bay’s intellectual property.

“Obviously we’re investing to make money, although I think many people in Canada feel that we have to stand up for Canada to a greater extent, and this is, I think, part of that,” said CEO Thomas Caldwell, who was once chairman of the Canadian Securities Exchange.

If it’s successful, his company does not intend to flip the assets. It is not interested in the Bay’s 80 liquidating stores or the 16 licensed under the Saks banners simply because the firm doesn’t have retail expertise.

However, Urbana has its eye on the 1670 charter that established Hudson’s Bay and will bid on it during a separate auction the retailer will run with Heffel Gallery to offload art and artifacts.

If it wins, Caldwell said it will likely donate the piece to an archival institute because he feels it is important the document stays in Canada and “it’s a big hassle to have something historic like that in an office or in a home.”

Another likely contender for Hudson’s Bay assets is Weihong Liu, the Chinese billionaire who owns three B.C. shopping centres through investment firm Central Walk.

Liu has said on social media that she wants to purchase stores to “restore The Bay to its glory” but never hosted a planned press conference to outline her bid and her assistant Linda Qin, who is also a B.C.-based real estate agent, has declined to say whether she is still pursuing an offer.

There have also been indications that a member of management might make a bid.

That conjecture arose after an “insider protocol” document was circulated to lawyers earlier in the month. The document outlined how the sales process would ensure “integrity and fairness” and was enacted “in view of a potential insider bid that may involve certain members of management,” who were not named.

Though the document said there are “no assurances” that a bid would eventually be made by management, it arrived after an April 7 deadline for management to declare whether they’re interested in making an offer.

QE Home, a Burnaby, B.C.-based bedding business, isn’t an insider but considered making an offer for the Stripes until it got the sense that rights to the motif were more likely to be sold as part of a block of assets.

“But if someone is taking over that block and there is still an opportunity down the line to be part of carrying on their legacy, we’d love to have conversations,” said Christina Xu, the company’s chief operating officer.

Such secondary conversations likely couldn’t happen until Hudson’s Bay and the firms overseeing the sale consider any bids. If multiple offers are made for the assets, an auction may be held around May 16 and court approval will be sought by May 30.

While the number of bids Hudson’s Bay is likely to drum up for its assets remains a mystery, its lease monetization process is showing more overt signs of promise.

An April 22 court filing revealed 18 unnamed parties submitted letters of intent expressing interest in a total of 65 leases.

Many of the 18 made a play for several of the same leases and some of the interested parties are landlords, the document said. Landlords often bid on their own leases during such processes to get more control over what tenants fill their spaces.

The court filing said some parties that filed letters of intent are interested in other Hudson’s Bay assets being offered as part of the assets sales process, though it does not say what they covet.

Businesses wanting Bay properties may have to meet the same terms the retailer agreed to when it obtained its leases. Those terms would likely force any leaseholder to use the entire property and could even stipulate the occupant be a department store, leaving few companies able to meet the requirements.

Thirty-six of the company’s leases did not generate any bids and are likely to be handed back over to landlords once liquidation sales end by June 15.

“With the bid deadline in the sales process approaching this week, the high level of sales at the stores, really helps to prove the strength of the Canadian consumer and their desire to help support Hudson’s Bay, an iconic Canadian institution,” Zalev said.

By Tara Deschamps

This report by The Canadian Press was first published April 30, 2025.