As the dismantling of the Hudson’s Bay Company accelerates under court supervision, a Toronto-based investment firm has stepped forward with a bid that blends patriotism with strategic asset play.
Urbana Corp., led by CEO Thomas Caldwell, has confirmed its intent to acquire the Hudson’s Bay Company brand name and historic Royal Charter. If successful, Caldwell said the firm would donate the 1670 Charter to a museum in Canada.
“The Charter should be back in Canada. There are no ifs and buts,” Caldwell told the Financial Post. “It’s not like our constitution, but it’s not far off. It is the genesis of enterprise and trading and growth in Canada.”
Founded in 1670, the Hudson’s Bay Company is North America’s oldest commercial corporation. But after filing for creditor protection last month owing more than $1 billion, HBC is being forced to liquidate its assets, including store leases, fixtures, intellectual property, and a vast archive of more than 4,400 historic items, many tied to Canada’s colonial and commercial development.
A Strategic Bid with Nationalist Undertones
Caldwell, whose firm manages around $500 million in assets, noted that while acquiring the brand could yield licensing or retail opportunities, the primary motivation is to protect Canadian heritage. Urbana Corp., which is listed on the TSX, has experience investing in both public securities and private equity.
Retail expert Carl Boutet said the move was “unexpected,” describing Urbana as “out on left field” in a process otherwise dominated by retail entities and business operators.
“They’re not a retail operator. They’re more of an equity firm,” Boutet said in an interview. “But there’s a growing sense of cultural urgency around the Charter in particular. This is good PR for Urbana, no doubt — but also a smart asset play if they can license the brand or partner with someone else who wants to retail it.”
Interest Surges in Brand, Real Estate, and Artifacts
As the April 30 bid deadline looms, more than 60 bids have been submitted for Hudson’s Bay store leases alone. Multiple Canadian shopping centre landlords are said to be among the suitors, especially those looking to reclaim anchor spaces or repurpose properties.
Some Hudson’s Bay boxes require significant upgrades, as investment has been lacking for years. Saks Fifth Avenue’s Canadian real estate is also said to have seen considerable interest in particular, given that stores are newer and better maintained.
The Queen Street flagship Hudson’s Bay in Toronto, for example, needs tens of millions of dollars in plumbing upgrades. The deteriorating infrastructure has already impacted Saks operations, with its main floor restaurant Lena shuttered due to water issues.
Boutet said that even if someone were to acquire both the brand and store leases, the business model remains deeply challenged.
“The idea of decoupling the intellectual property from the physical store network makes a lot of sense,” he said. “Trying to revive both at once is just too heavy a lift.”
Chinese Billionaire Weihong Liu in Toronto Scouting Stores
One of the most talked-about figures circling Hudson’s Bay is Weihong Liu, a Chinese billionaire who has been rumoured to be exploring a 30-store acquisition strategy. Liu was in Toronto over the weekend, visiting the Queen Street Hudson’s Bay store and Yorkdale Shopping Centre. Her movements were shared on Chinese social media platform RedNote, where she has a sizable following.
While Liu has not commented publicly, Boutet said she may be the only bidder interested in acquiring both the brand and a significant number of leases.
“She could be aiming to take over a sizable footprint and run a leaner version of the department store concept,” Boutet explained. “But that comes with enormous cost and risk, especially considering landlords previously declined to reinvest under the former HBC management.”
Urbana’s Motives: History and Business
While Urbana’s focus appears to be the brand and Charter, rather than the retail operations, Boutet believes their move may offer a glimmer of hope for a Hudson’s Bay 3.0.
“If they acquire the IP, they could license it to someone like Simons, or even collaborate with a digitally native brand that wants to build on the heritage. There’s still value in the name — but only if you can do something fresh with it.”
Urbana’s stock surged more than 6% following news of its bid. The company confirmed on its website that its decision to pursue the HBC brand and Charter was tied to its interest in preserving Canadian business history.
“They’re publicly traded, so it’s all on the record,” said Boutet. “They had $497 million in other assets on their last balance sheet and $45 million in liabilities. So they’re well positioned to make a bid.”
What Happens Next?
The court has not yet indicated whether the Royal Charter will be protected from auction, although several parties have urged it be treated as a nationally significant artifact. So far, the Charter remains available to the highest bidder, subject to final judicial review.
“There’s nothing more historically important in the asset list than that Charter,” Boutet noted. “If anything should be preserved, it’s that.”
Meanwhile, many observers believe a piecemeal breakup of HBC is the most likely outcome. “You’ll have separate winners for real estate, brand IP, and artifacts,” said Boutet. “And that’s not necessarily a bad thing. It might be the clean break this company needs to evolve.”
He added, “The real question now is whether anyone can bring forward a compelling vision — not just to own these assets, but to do something meaningful with them.”
