Hudson’s Bay to sell name, stripes, brands to Canadian Tire for $30 million

Hudson’s Bay brands sold

Photo: The Canadian Press

This composite image shows signage of Canadian Tire, left, and the Bay. THE CANADIAN PRESS/Sean Kilpatrick, Pawel Dwulit

Hudson's Bay's is getting a second life with a new owner — Canadian Tire Corp. Ltd.

Canadian Tire says it will pay $30 million to the beleaguered retailer that's Canada's oldest company says it plans to sell its intellectual property to retailer.

The sale includes the overarching Hudson's Bay brand, its iconic, multi-coloured stripes motif, its coat of arms and other brand trademarks.

The deal allows products under these names to be sold by Canadian Tire, which also owns SportChek, Party City, Mark's and Pro Hockey Life, at their 1,700 stores.

The sale still needs court approval and companies that make purchases through creditor protection processes are under no obligation to make use of the brands they buy, but it's likely Canadian Tire will capitalize on any acquisitions.

Hudson's Bay put its assets up for sale after it filed for creditor protection in March, saying it was having significant trouble paying its bills.