Court OK's Hudson's Bay selling trademarks, like iconic stripes, to Canadian Tire

Hudson's Bay Co. will live on in some fashion, and what form it takes will be solely up to Canadian Tire. 

On Tuesday, the beleaguered department store got court approval to sell its intellectual property, including its iconic multicoloured stripes motif, to Canadian Tire for $30 million.

Bankrupt Hudson's Bay Co. will use the cash to pay some of its debts before the 355-year-old retailer disappears entirely. On Sunday, the company wrapped up liquidation sales and closed its remaining 96 Bay and Saks-branded stores to the public. 

During liquidation sales, many Canadians rushed to buy items like blankets and bathrobes adorned with the classic stripes. Retail strategist David Ian Gray says Canadian Tire may invest in a line of goods bearing the stripes, but warns that if the investment is overdone, the motif might lose its lustre.

"That surge on the blankets that we saw, I think in large part that was because there was sudden scarcity," said Gray who is based in Vancouver. 

If the new owners "cheapen it too much, it's not going to cause a resurgence in that brand."

As part of the deal, Canadian Tire will also take ownership of Hudson's Bay's company names and other trademarks, such as its historic coat of arms.

The big box retailer will also get domain names for its websites, and all of the Bay's customer data, including personal information, court documents say. 

Gray says Canadian Tire might consider that customer data as the golden prize in the deal. Hudson's Bay first launched its loyalty rewards program in 2001, so it tracked customer shopping habits for more than two decades. 

"That's going be an enormous transactional database," he said. "There's lots you can do with that data to monetize it."

The Canadian Tire deal excludes the storied company's art, artifacts and archives, as well as any of its more than 9,000 employees, most of whom have already been laid off. 

In March, the Bay was granted creditor protection by Ontario Superior Court, putting its assets up for sale. Seventeen parties submitted bids for its intellectual property.

"The Canadian Tire transaction, among other things, provides for the highest purchase price of any bid received … and therefore provides the greatest value," stated a court document filed on May 29. 

Canadian Tire, which has more than 1,700 retail locations across the country, says it has also submitted a bid for "a handful" of Hudson's Bay's lease locations. According to court records, HBC has received 12 bids for 39 of its leases.