Several parties have expressed interest in acquiring Hudson’s Bay Company leases as the iconic department-store proceeds through creditor protection.

According to a Tuesday court filing, 18 unnamed parties have submitted letters of intent for a total of 65 leases. The report, prepared by Alvarez & Marsal — the court-appointed monitor overseeing the restructuring — indicates that several bidders expressed interest in the same properties, with some submissions coming from landlords themselves.

The filing does not disclose which locations generated the most attention or provide details about the interested parties. HBC declined a Canadian Press request to comment on the report, while Alvarez & Marsal and real estate firm Oberfeld Snowcap, which is managing the lease-monetization process, did not respond to media inquiries.

The update sheds light on Hudson’s Bay’s efforts to generate value from its vast store network, which includes properties in some of Canada’s busiest commercial hubs. Roughly 100 leases were made available in the process. Currently, HBC operates 80 Hudson’s Bay stores, 13 Saks Off Fifth locations, and three Saks Fifth Avenue outlets, supported by four distribution centres. All but six stores are slated to close by mid-June as part of the company’s liquidation strategy.

The Alvarez & Marsal report also notes that some interested parties are exploring additional HBC assets being marketed separately. These could include intellectual property and trademarks tied to the company’s iconic branding, such as the distinctive Hudson’s Bay Stripes.

HBC is offering leases — rather than owned real estate — because the company sold most of its property holdings in previous years. A handful of stores are run through a joint-venture with RioCan Real Estate Investment Trust, and many of the leases are understood to come with favourable terms, according to CP. Prospective tenants may be required to uphold the original lease conditions, which could mandate full use of the space and a continued department store presence — a potential hurdle for many suitors.

Despite the significant interest, court filing revealed that 36 leases did not receive any bids. HBC, Alvarez & Marsal, and Oberfeld are now evaluating whether to return those properties to landlords.

As part of the process, 60 potential buyers were contacted, with 31 signing non-disclosure agreements granting them access to sensitive information necessary for making a bid. Binding offers are due by May 1 and must include a refundable deposit equal to 10% of the proposed purchase price.

Pictured: Hudson’s Bay store at Market Mall in Calgary.

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

Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28 at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multi-family housing, and much more. www.ConnectCanada2025.com