Hudson’s Bay, Canada’s oldest company with a storied 355-year history, has announced a significant sale of its intellectual property to Canadian Tire Corp. Ltd. The agreement, worth an estimated $30 million, would throw the company’s famous “Bay stripes” motif and many related brands into the deal. This agreement is transformative for Canadian retail history. The Bay stripes, an iconic part of Canadian heritage since 1779, are to be placed under the control of Canadian Tire.
Hudson’s Bay, established in 1670 as a fur-trading company. Emerging from its creation, it has knitted Canada’s land, economy, and relations with Indigenous peoples together from the outset. Today, over the course of two centuries, its purpose has shifted away from its original defensive artillery functionality to serve all aspects of Canadian life. It has outfitted first homes, established wedding and baby registries, and created festive holiday window displays that have become part of the cultural landscape.
The Bay stripes are pretty spectacular with a heavy application of green, red, yellow, and indigo. This teepee-inspired design has adorned everything from apparel to afghans, from pots and pans to lawn chairs. This extensive heritage rendered the stripes the far greater prize in the recent purchase by Canadian Tire.
At a press conference highlighting the deal, Canadian Tire’s CEO Greg Hicks described his excitement over the arrangement. In addition to promoting local products, Quadri focused on the need to defend Canadian heritage in the retail industry.
“Some things are just meant to stay Canadian and we are honoured to welcome many of HBC’s leading brands — including the iconic HBC coat of arms and the Stripes — into our Canadian Tire family.” – Greg Hicks
The acquisition process attracted a huge amount of interest with Hudson’s Bay attracting 17 bids for its assets. Twelve different entities bid on 39 different places, highlighting just how cutthroat the bidding and leasing process is. Hicks observed that several bidders competed for the same retail locations. This illustrates yet again the highly strategic value of Hudson’s Bay’s store locations in key markets across Canada.
Assuming court approval, the sale is anticipated to close this summer. Hicks emphasized that a Canadian Tire purchase would not mean gaining ownership of all of Hudson’s Bay’s business. He doesn’t think this would be a good move in terms of their current business model.
“That is just not a good fit for us right now, given all the things we have going on.” – Greg Hicks
Hudson’s Bay spokesperson Liz Rodbell thanked the Canadian public for its support while celebrating the new partnership. She thinks Canadian Tire would be good caretakers of the company’s legacy.
“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience.” – Liz Rodbell
Canada’s Canadian Tire is preparing to add new names like these legendary brands to its retail machines. In response, Hicks admitted this change comes with a lot of emotional baggage.
“The fall of the Bay is disheartening to witness but the deal his company reached is meant to be both strategic and patriotic.” – Greg Hicks
