As some consumers scour The Bay for bargain basement deals, more deep-pocketed shoppers are kicking the tires on buying the whole dang store.
Driving the news: The Hudson’s Bay Company has at least four potential bidders interested in buying part of the business, a source told the Globe and Mail. As part of its restructuring plan — in which it is liquidating all but six stores — The Bay is selling both its leases and its business, which could include assets like intellectual property and a vast trove of artifacts.
- This past Monday, a deadline for company insiders to declare acquisition interests passed. The final deadline for any potential buyer to submit an offer is April 30.
- As for its leases, the bid deadline is May 1. However, two department stores tabbed as ideal buyers, Holt Renfrew and Simons, have not expressed interest.
Why it matters: The Bay, alongside advisers aiding the sale process, reserves the right to pick not just the highest bid but also the “best” one. This means that The Bay could pursue an offer that prioritizes reviving the business rather than stripping it for parts.
- Take Weihong Liu, the billionaire owner of shopping centres in B.C. who has publicly said she wants to "restore The Bay to its glory" and buy dozens of Bay locations.
Yes, but: If Bay 2.0 wants to survive another 335 years, it will need to adapt. This could mean ditching the department store model for smaller boutiques with exclusive items.—QH