Hudson’s Bay Company cashing out its Royal Charter to repay massive debt
The Royal Charter issued to the Hudson’s Bay Company by King Charles II in 1670 will be up for sale as Canada’s oldest company monetizes its assets to repay nearly $1 billion in debts.
TORONTO – The Royal Charter issued to the Hudson’s Bay Company by King Charles II in 1670 will be up for sale as Canada’s oldest company monetizes its assets to repay nearly $1 billion in debts.
Subject to court approval, Hudson’s Bay Company plans to auction off its most historically significant art and artifacts.
“This approach ensures that the care, consideration, and expertise required for these pieces can be fully prioritized through a separate process facilitated by a fine art auction house with the assistance of HBC and [financial advisor] Reflect Advisors LLC,” the company stated.
Hudson’s Bay Company ULC, the Canadian entity comprising the retailer Hudson’s Bay and TheBay.com, last month began the going-out-of-business proceedings for nearly all of its 80 Hudson’s Bay stores. Through a licensing agreement, the company also operates 3 Saks Fifth Avenue and 13 Saks Off 5th stores in Canada.
Hudson’s Bay Company is nearly 200 years older than Canada (est. 1867). Since 2008, it has been owned by NRDC Equity Partners, a U.S.-based private equity firm founded by real estate investor Richard Baker.
When it filed for reorganization last month, the company’s debt included a total $950 million to nearly 2,000 secured and unsecured creditors, including brands like Adidas Canada, Estée Lauder, L’Oréal Canada, Levi Strauss Canada, Michael Kors Canada, Nike Canada and Ralph Lauren, according to reporting by CBC News.
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