Canadian Tire will acquire key intellectual property from the Hudson’s Bay Company, including its iconic multicolour stripes, historic coat of arms, and a suite of brand trademarks, in a $30-million transaction subject to court approval.
The deal comes as Hudson’s Bay, Canada’s oldest company, continues the liquidation of its department stores across the country under court protection granted earlier this year.
The transaction includes trademarks for Hudson’s Bay, The Bay, the recognizable HBC coat of arms, and the company’s multicoloured stripes—design elements that have become emblematic of Canadian retail history. The Hudson’s Bay Company dates back to 1670 and had long used the stripes as a branding element, most notably on wool blankets and outerwear.
“Some things are just meant to stay Canadian,” said Canadian Tire President and CEO Greg Hicks in a statement released Thursday. “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.”
Deal Part of Broader Sales Process
The agreement was reached as part of a court-supervised process under the Companies’ Creditors Arrangement Act (CCAA). Hudson’s Bay has been seeking buyers for its assets since filing for creditor protection on March 7, citing more than $1.1 billion in liabilities and ongoing operating losses.
According to court documents, 17 bids were submitted for various parts of the company, including intellectual property and private-label brands such as Zellers and Distinctly Home. Twelve parties also submitted offers for a total of 39 leases. Canadian Tire disclosed that it was among those bidding for leasehold interests.
The court is expected to review the deal and other asset transactions in the coming weeks, with final approvals anticipated by early summer. The Canadian Tire transaction is expected to close later this summer, pending court approval and other conditions.
Hudson’s Bay Winding Down Retail Operations
The intellectual property sale follows months of failed attempts by Hudson’s Bay to restructure or find a buyer to continue operating select stores. The company initially sought to preserve approximately 40 locations and later reduced its plan to six key stores. According to a confidential investor memo obtained by The Globe and Mail, an $82-million investment would have been required to support those six locations in the first year alone.
With no buyer committing to that plan, the company added those final stores to the liquidation process. Clearance sales are expected to be completed by the end of May, with stores vacated by the end of June.
Hudson’s Bay President and CEO Liz Rodbell commented on the agreement in a statement released Thursday.
“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” said Rodbell. “I have no doubt they will be strong stewards of the more than 350-year HBC legacy as they move our iconic brands forward.”
Canadian Tire Expanding Portfolio of Owned Brands
Canadian Tire has increasingly focused on expanding its portfolio of owned and exclusive brands. In recent years, it has acquired several well-known names including Woods (2014), Paderno (2017), and Sher-Wood Athletics Group trademarks (2018). In 2024, owned brands accounted for 37.5 per cent of the company’s total retail sales.
Hicks described the acquisition of the Hudson’s Bay IP as consistent with the company’s “True North” strategy.
“This choice feels as strategic as it feels patriotic,” Hicks said. “It builds on our generational connection to life in Canada.”
Uncertainty Over Future Use of HBC Brands
While Canadian Tire has not disclosed specific plans for how the newly acquired brands will be used, analysts believe the most immediate application will be through merchandise integration.
Retail strategist Carl Boutet said the multicoloured stripes and coat of arms are most likely to appear on products sold in Canadian Tire stores.
“I suspect we will see blankets with the stripes on shelves,” Boutet said. “The interesting question is whether they’ll create a dedicated space for the brand, like a shop-in-shop, or simply incorporate it into the existing merchandise.”
Boutet said the acquisition could also serve as a strategic move to block competitors from leveraging the Hudson’s Bay name and legacy.
“This could prevent another player from reviving the brand in a format that might compete with Canadian Tire,” he said.
Brand Licensing Scenarios Unclear
It remains uncertain whether Canadian Tire would consider licensing the Hudson’s Bay name to a third party for retail use. Canadian Tire has so far indicated no interest in operating traditional department stores.
“If someone wanted to use the Bay name in a retail format, they’d likely need a license from Canadian Tire now,” said Boutet. “But I’d be surprised if the company was interested in allowing that.”
Boutet also noted that the acquisition includes customer goodwill and brand equity but raised questions about whether consumer data or customer relationship management (CRM) assets were included in the deal.
“There’s real value in first-party data,” he said. “But privacy regulations in Canada, such as CASL, would limit how transferable that data is.”
Value of the Deal and Implications
Boutet said the $30-million price tag likely reflects Canadian Tire’s internal forecasts for product volume, brand leverage, and the promotional value of the acquisition.
“For Canadian Tire, the math is straightforward. They already know what volumes they can move in home textiles or décor,” he said. “This deal gives them a strong national story and a valuable brand that resonates with Canadians.”
The timing of Canadian Tire’s announcement, which came before court approval, raised some eyebrows in the retail community.
“It’s interesting they announced it so early,” Boutet said. “It suggests confidence in the outcome or that the monitor has indicated theirs is the winning bid.”
End of the Line for Hudson’s Bay Stores
The sale of intellectual property further narrows the chances that a new operator could revive Hudson’s Bay as a department store. Some investors had considered relaunching the chain or launching specialty stores under the Bay or Zellers names. Without ownership of those brands or the signature stripes, such plans are unlikely to proceed.
