After 350 years in business, the iconic Hudson’s Bay Company is shuttering all of its stores permanently on Saturday, May 31. This decision outlines the loss of an era for the iconic retailer. This closure will result in over 8,300 active employees and select non-active employees losing their jobs and such benefits as retirement security. The company, meanwhile, is in the midst of its own sea change. To facilitate this transition, nearly 1,000 staffers will remain on for an additional two weeks after the port’s closure.
In the wake of the store closures, remaining Hudson’s Bay employees will help customers retrieve furniture and fixtures they have purchased. Further, these workers will help clear the homes as the company reworks its corporate structure and exits from bankruptcy. Hudson’s Bay is preparing to ask the court for approval. Now, on June 3, they will try to sell a few unencumbered trademarks, given the circumstances.
Canadian Tire is emerging as the undisputed heavyweight champion of the trademark trolling industry. They’ve signed a deal to purchase a few of Hudson’s Bay’s vintage logos and iconic catchphrases for $30 million. The deal stands out not only for its financial value but for its cultural significance, as Canadian Tire will acquire phrases that resonate with consumers, such as “the official photographer of Canada’s cutest babies” and “the official store of Christmas.”
Partly, the acquisition prompts a spotlight on features of Hudson’s Bay’s biz that have faded in recent years. It’s honorific acknowledgement to a long and terrible history that started with its founding charter as the Governor and Company of Adventurers of England Trading into Hudson’s Bay. Perhaps Canadian Tire should borrow the old Zellers slogan “lowest price is the law.” This move would deepen their brand portfolio diversification even further.
This decision comes after an incredibly competitive slog. Hudson’s Bay drew bidding competition from 16 other bidders for their trademarks. The choice of Canadian Tire as the purchaser further highlights the value of these trademarks in the retail environment.
This acquisition is about more than swapping a logo. It exposes a fundamental change in consumer behavior and highlights the struggle of legacy retailers modeling their pivots on yesterday’s market to adjust to a constantly evolving environment. The eventual shuttering of Hudson’s Bay stores will be an especially bittersweet marker of the changing retail landscape.
