Retail analysts predict high demand for Hudson’s Bay Company store leases as the iconic retailer moves forward with asset sales amid its struggle to stay afloat.

The company has begun the process of selling its most valuable assets. According to The Canadian Press, the fate of store leases will be determined before other assets are liquidated.

Retail analysts expect the large, well-located properties expected to attract significant interest from diverse parties, the Star reported.

The Bay’s most lucrative properties are those in prime retail locations and major shopping centres. However, analysts note that no single retailer is likely to take over all the available space. Instead, these properties may be repurposed or subdivided for different uses, such as multi-family residential or entertainment.

“Nobody’s going to step in and take all those locations in one fell swoop,” Carl Boutet, chief strategist at Montreal-based retail advisory firm Studio RX, told CP. “Slow and intentional. That’s the name of the game right now, especially in this environment.”

Boutet expects interest from a variety of prospective buyers, including residential developers, entertainment companies, and other retailers, ahead of the April 7 deadline for initial expressions of interest. Binding bids will be due by May 1, with final decisions to follow.

CP reported that Hudson’s Bay’s well-known branding, including its iconic stripes and house brands, is also part of the sale. However, industry observers believe that the leases will be the most sought-after assets, given their potential for redevelopment and conversion into mixed-use spaces.

Six Bay stores are expected to remain open after the company emerges from creditor protection.

Pictured: Sign on a Hudson’s Bay store in Toronto.

Photo: ACHPF / Shutterstock.com

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