Canadian Tire is slated to acquire Hudson’s Bay Company brand assets for $30 million.

The companies announced that they have entered into a definitive agreement that will be subject to customary closing conditions and court approval.

The deal appears to indicate that at least some stores, not just products, could continue to bear the Bay name after Canada’s oldest company completes its journey through the creditor-protection process. Canadian Tire said it has also bid on “a handful” of Bay store leases.

The various brand assets include the iconic HBC Stripes and various company names, logos, designs, coat of arms and brand trademarks.

“Canadian Tire and the Hudson’s Bay Company are among the nation’s longest-standing companies, with a combined Canadian heritage measured in centuries,” said Greg Hicks, Canadian Tire’s president and CEO, in a statement released by the company.

“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.”

Hicks added that the acquisition feels as “strategic” as it does “patriotic.”

“It builds on our generational connection to life in Canada and it fits our new True North strategy,” he said. “The Stripes will add beautifully to our portfolio of owned brands alongside other Canadian favourites that we have fostered and grown, and the Bay and its brands have long been known for their strength in categories that our customers will seek in our stores and online.”

All 80 Hudson’s Bay Company stores and 15 Saks-branded outlets are slated to close in June after the department-store chain completes liquidation sales. The business is not expected to survive.

“It’s disheartening to witness the final days of another great Canadian retailer, and while the circumstances are unfortunate, we’re proud to step in for customers,” he said. “Ultimately, customers are at the core of all we do, and by Canadians’ reaction to recent rumours of this news, it is clear they see us as a great home for HBC’s heritage.

“We are proud to steward these iconic brands into our – and their – next century.”

Reports indicated that Canadian Tire had bid on HBC’s intellectual properties. But Canadian Tire had not previously confirmed them.

In a separate news release, the Hudson’s Bay Company said its board, Reflect Advisors, which is acting as the firm’s financial advisor, certain senior lenders and court-appointed monitor Alvarez & Marsal concluded that the sale of the intellectual properties to Canadian Tire was in the best interest of the company and its stakeholders. The deal is subject to court approval.

“We are grateful that the HBC brand has found a home with another heritage retailer that encapsulates the uniquely authentic Canadian experience,” said Liz Rodbell, president and CEO of the Hudson’s Bay Company. “I have no doubt they will be strong stewards of the more than 350-year HBC legacy as they move our iconic brands forward.”

The purchase price and deal exclude HBC’s art and artifacts, which will be subject to a separate court-approved distribution process.

Meanwhile, Canadian Tire’s bid on leases appears to indicate that at least some closed Bay locations could continue as big-box outlets, if the automotive-products and hardware retailer acquires them. Analysts have predicted that many Bay stores will be divided into smaller units or redeveloped as part of mixed-use projects, including multi-family.

Pictured: Hudson’s Bay store in Markham, Ont.

Photo: JHVEPhoto / Shutterstock.com

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