Hudson’s Bay Company is undergoing a significant transition as it seeks new ownership, with the court monitor guiding the process revealing that 17 formal bids have been submitted. This is in addition to the Hudson’s Bay’s creditor protection plan, which is part of addressing its financial woes. The monitor reached out to 407 interested buyers, highlighting the appetite for the retailer’s assets.
The bidding process began when the court monitor reached out to potential buyers, including various investment firms and retail operators. Of the 407 qualified interested parties, only 54 went the further step of signing a non-disclosure agreement (NDA). In the process, they won access to Hudson’s Bay’s confidential data. This was a critical step, as it enabled prospective bidders to judge the company’s true value and future viability before submitting binding bids. Fewer than half of those that signed the NDA went on to actually submit official bids.
Weihong Liu, a prominent mall owner in British Columbia, as one of the big bidders. He’s made no secret of his plans to buy Hudson’s Bay. As of this writing, Urbana Corp., an investment management firm based in Toronto, has formally declared its intent to bid. Canadian Tire has led all suitors to become the favorites to be successful bidders. The firm still has not publicly acknowledged that it formally submitted a bid.
To protect bidders’ interests, the court monitor has not revealed the names of any bidders, keeping the process confidential. This lack of transparency is the norm in these kinds of sales, as it preserves the competitive nature of bidding. Bidders were never allowed to see Hudson’s Bay’s full data, which consisted of detailed financials, customer insights and other operational details. Then, they placed their bids.
As part of the creditor protection proceedings, any settlement agreements made with potential bidders need to be approved by the court by May 30. This gives the process an artificial and unnecessary sense of urgency. Hudson’s Bay needs to plot its course soon. The bidders are still deciding their next moves. They are using their understanding of Hudson’s Bay’s business outlook to choose whether to proceed with binding offers or not.
At least three unnamed parties are reported to be interested in Hudson’s Bay. That’s particularly remarkable given the company’s deep roots in Canadian retail history. The company operates over 400 department stores across Canada. Its assets consist of a regional network of retail locations matching and supporting the valuable real estate—their local markets.
As the process continues to play out, stakeholders on all sides of the process are eager to see how these bids will determine Hudson’s Bay’s future. The results of this upcoming bidding process will have a tremendous effect on the employees and customers. It would dramatically change the face of Canadian retail.
