The Hudson’s Bay Company (HBC) is expected to seek court approval for sales of its leases, real estate and other assets within two or three weeks.

An Ontario court judge instructed the Bay to do so during a hearing Tuesday. The iconic department-store chain has received 17 bids in its ongoing sales process as the company goes through creditor protection, according to a recent court filing.

Justice Peter Osborne extended HBC’s stay in creditor protection until July 31. HBC also received permission to repay $165 million in debt after the company earned more than enough from liquidation sales to keep operating.

Joseph Pasquariello, a lawyer who represents RioCan REIT, asked the court to delay the repayment until later, the Canadian Press reported. But Osborne still granted HBC’s request.

RioCan and HBC operate several Bay store properties under a joint-venture.

Interested parties have submitted 12 qualified bids for leases at 39 locations, according to the document filed by court-appointed monitor Alvarez & Marsal, which is co-ordinating HBC’s advance through creditor protection. The bids came after 18 parties had initially submitted letters of intent, expressing interest in 65 individual leases.

No bids were submitted for 62 other leases, leaving the company at risk of incurring penalties for terminating those agreements.

All Hudson’s Bay Company stores and Saks-branded outlets are slated to close. Many stores are emptying as a result of the highly popular liquidation sales, which have drawn more customers than the outlets have seen in years.

B.C.-based mall owner Weihong Liu has disclosed that she bid on 25 store leases. The Toronto Star and other media outlets have reported that Canadian Tire also submitted a bid, but the company has not confirmed that.

Urbana is known to be seeking Bay intellectual properties.

Pictured: Photo of Bay store at Market Mall in Calgary.

Photo: Monte Stewart. All rights reserved. No republishing permitted.

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