The Hudson’s Bay Company (HBC), currently undergoing a court-supervised restructuring under the Companies’ Creditors Arrangement Act (CCAA), has appointed Oberfeld Snowcap Inc. as its exclusive real estate consultant to manage the monetization of its leased store portfolio across Canada. The move is a significant step in HBC’s broader financial and operational overhaul following its March 2025 filing for creditor protection.
The engagement was formalized through a Consulting Services Agreement dated March 20, 2025, and subsequently approved by the Ontario Superior Court of Justice (Commercial List). Filed court documents provide insight into Oberfeld Snowcap’s monetization role.
A Strategic Appointment Amid Financial Turmoil
Oberfeld Snowcap, a Montreal-headquartered commercial real estate advisory firm specializing in retail, has been selected to assist Hudson’s Bay in evaluating and facilitating lease-related transactions that could generate value or reduce liabilities. The appointment followed consultations with HBC’s internal advisors and Alvarez & Marsal Canada Inc., the court-appointed Monitor overseeing the restructuring.
Jay Freedman, President of Oberfeld Snowcap, and Jeff Ross, Managing Director, are leading the project, leveraging their combined decades of experience in retail lease advisory across Canada.
Scope of Oberfeld Snowcap’s Engagement
Under the terms outlined in the consulting agreement, Oberfeld Snowcap is tasked with managing the lease monetization process for Hudson’s Bay’s real estate portfolio across Canada. This includes providing detailed local market insights to evaluate the value and strategic potential of individual leased locations. The firm will leverage its long-standing relationships with landlords, developers, and other stakeholders to identify and pursue opportunities for lease sales, assignments, transfers, or terminations that align with HBC’s restructuring objectives.
In addition to these core advisory functions, Oberfeld Snowcap may offer licensed real estate brokerage services where applicable, ensuring full transactional support if and when deals progress to execution. The firm is also responsible for supporting the negotiation of binding commercial and financial terms for lease transactions and will work collaboratively with other brokers or professionals involved in specific deals.
Court documents indicate that all offers or inquiries regarding HBC leases must be formally reported by Oberfeld Snowcap to both Hudson’s Bay and the court-appointed Monitor, Alvarez & Marsal Canada Inc. The firm must operate strictly under HBC’s direction and is not authorized to make independent decisions or representations on behalf of the retailer.
Term and Timeline of Agreement
The engagement began on March 21, 2025, and is currently set to conclude on September 30, 2025, unless extended by Hudson’s Bay in 30-day increments. Given the complexity of HBC’s lease portfolio, it remains possible that the term may be extended beyond the initial six-month period, according to court documents.
Compensation Structure
Oberfeld Snowcap’s compensation under the agreement includes both a fixed monthly work fee and a performance-based success fee. The firm will receive a monthly work fee of C$80,000, which is pro-rated for any partial months worked and capped at a total of C$240,000 (plus applicable taxes) over the initial term of the agreement. This fee is creditable against any success fees that may be earned during the engagement.
The success fee component is based on the net proceeds generated from court-approved lease transactions. Specifically, Oberfeld Snowcap will receive 10% of the net proceeds from each completed transaction, subject to a maximum of C$175,000 per lease (plus taxes). These success fees are payable only after the successful closing of a transaction, provided an invoice has been submitted. No further compensation is owed beyond these amounts, and Oberfeld Snowcap is expected to cover its own operating expenses throughout the engagement, according to court documents.
Monetizing Leased Store Locations Across Canada
With a substantial number of leased locations across the country, including both flagship urban stores and suburban mall sites, Hudson’s Bay’s real estate holdings represent a significant asset base. Oberfeld Snowcap’s role will be to assess the portfolio and help identify opportunities to unlock value through lease sales, transfers, assignments, or negotiated terminations. The firm is expected to evaluate each lease based on market demand, location potential, and landlord interest, with the goal of maximizing returns or reducing liabilities for HBC.
In many cases, underperforming or non-core sites could be repositioned for other retailers or redeveloped altogether. By leveraging its national network and deep industry relationships, Oberfeld Snowcap is positioned to facilitate transactions that align with Hudson’s Bay’s restructuring strategy while helping reposition prime real estate assets for future retail use.
A National Firm with Deep Market Knowledge
Founded over 40 years ago, Oberfeld Snowcap Inc. is widely regarded as one of Canada’s foremost commercial real estate advisory firms specializing in the retail sector. With a long-standing reputation for representing major retailers, landlords, and developers across the country, the firm brings a wealth of experience to Hudson’s Bay’s restructuring process. Its services span tenant representation, lease restructuring and disposition, market analytics, site selection, and strategic planning — making it well suited to manage complex real estate portfolios during times of transition.
Headquartered in Montreal, Oberfeld Snowcap maintains offices in Toronto, Calgary, and Vancouver, along with a U.S. presence in Boca Raton, Florida. The firm’s national platform enables it to deliver regionally informed insights while maintaining a unified approach to real estate strategy.
Oberfeld Snowcap’s value proposition lies in its data-driven approach, which combines real-time market intelligence with deep industry relationships. This enables the firm to identify and execute real estate strategies that create long-term value. Its client roster spans startups, national chains, and international brands, reflecting its versatility and depth in the Canadian retail landscape.
Over the coming months, Oberfeld Snowcap will work closely with HBC leadership and the Monitor to identify monetization opportunities. As court filings continue to be made public, and monetization transactions begin to close, industry observers will watch to see what happens next with the newly available spaces.
I’m sorry, monetize the leases in what way? Just who is lined up waiting to take these massive spaces that are abruptly going to become available, all around the same time? There are no major international chains waiting to enter Canada who will scoop up some or all of these department store premises.
Are landlords hoping to convert these premises into office space? Post-pandemic, the demand isn’t there. Turning former Bay stores into entertainment complexes might be an idea—except that cinemas are dying and the market is already saturated with experiential entertainment options. How about turning the ex-HBC stores into medical and other service facilities? Fantastic idea, except that the country has a severe shortage of doctors and nurses, so there would be no one to staff such clinics even if premises were made available.
Great idea, hire a company to “monetize” an asset which may have little to no value in the absence of an ongoing national HBC operation. Remember, the space vacated by Nordstrom Canada (which was a tiny operation a fraction the size of Hudson’s Bay) two years ago still hasn’t been fully absorbed by the market!