Canadian Tire bids on Hudson’s Bay assets as retailer seeks to restructure

Canadian Tire's strategic interest in Hudson’s Bay assets

Though news outlets widely reported throughout the week that Canadian Tire submitted a bid for Hudson's Bay, the company has not publicly confirmed its participation in the bidding process.

The deadline for formal bids was 5 p.m. on Wednesday, as part of Hudson’s Bay's creditor protection proceedings. Other interested parties include Toronto investment manager Urbana Corp., which has bid for the company's intellectual property, and billionaire BC mall owner Weihong Liu, who has expressed interest in operating some Hudson’s Bay stores.

Hudson’s Bay filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) on March 7, 2025, citing a severe liquidity crisis that left the retailer unable to meet critical obligations. The company reported just $3 million in cash on hand as of January 1, 2025, with liabilities exceeding $1.4 billion, including unpaid trade payables, secured debt and mortgage obligations.

As the deadline for bids has passed, the next steps will involve evaluating the offers and determining the future of Hudson’s Bay's assets. The outcome of this process will significantly impact the Canadian retail landscape and the legacy of one of the country's oldest retailers.

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Brief histories of Canadian Tire and Hudson’s Bay

Canadian Tire Corporation

Founded in 1922 by two brothers selling tires out of a Toronto garage, Canadian Tire has evolved into a cornerstone of Canadian retail culture — a company as iconic as the red triangle it’s known for. What began as a niche auto parts business is now a sprawling retail empire, with tentacles in nearly every aspect of everyday life. Today, Canadian Tire operates across automotive, hardware, sports, leisure and housewares, with a portfolio that includes household names like Mark's, Sport Chek, Sports Experts, PartSource and even its own financial arm, Canadian Tire Bank.

Whether you’re buying a hockey stick, a barbecue or a new set of snow tires, chances are Canadian Tire has a hand in it, making its potential bid for Hudson’s Bay not just strategic, but deeply symbolic in the story of Canadian commerce.

Hudson’s Bay

Founded in 1670 as a fur trading outpost, Hudson’s Bay isn’t just North America’s oldest company, it’s a living piece of Canadian history. From outfitting explorers in the wilderness to anchoring shopping malls in every province, The Bay has long been woven into the national fabric. Today, it operates department stores across the country and controls a massive footprint of about 40 million square feet of real estate through its HBC Properties and Investments arm. But age doesn’t guarantee immunity.

In March 2025, the retail icon filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA), citing everything from sluggish consumer spending and global trade tensions to a sharp decline in foot traffic at downtown locations. For many, it marked a sobering moment — not just for the company, but for the future of department store retail in Canada.

Implications for Canadian consumers and investors

Canadian Tire's potential acquisition of Hudson’s Bay's intellectual property could lead to the revitalization of the Hudson’s Bay brand, potentially offering consumers a broader range of products and services. However, the closure of Hudson’s Bay stores, particularly flagship locations, may result in reduced shopping options in certain areas.

Investors in both companies will be closely monitoring the outcome of this transaction. For Canadian Tire, the acquisition of Hudson’s Bay assets could diversify its retail offerings and strengthen its market position. Conversely, Hudson’s Bay's ongoing restructuring efforts may impact its financial stability and shareholder value. The involvement of other bidders, such as Urbana Corp. and Weihong Liu, adds complexity to the situation, potentially leading to a competitive bidding process that could influence the final terms of any agreement.

As the situation develops, stakeholders will need to assess the long-term effects on the Canadian retail sector, consumer choice and investment returns.