Hudson's Bay Company sold to NRDC Equity

The history of The Hudson's Bay Company is older than that of the country itself but with new American owners at the helm, the company and Canadian institution's days could be numbered.

CTV Calgary: Lane Fraser looks at the new owners

The Hudson's Bay Company is about to get a makeover after it was bought out by a U.S. equity firm.

CTV Newsnet: BNN's Michael Hainsworth on the HBC

The Hudson's Bay Comapny was bought on Wednesday by a U.S. equity group, which will bring the Lord and Taylor retailer to Canada.

Watch: See all Videos in the Player

A A | Email This Email | Print | Comments (67) Tweet

CTV.ca News Staff

Date: Wed. Jul. 16 2008 8:15 PM ET

Hudson's Bay Co. has been sold to a U.S. equity group in a move that will bring the upscale Lord & Taylor retailer to Canada.

NRDC Equity Partners of New York bought HBC on Wednesday and says the move allows it to open Lord & Taylor stores in Canada, which the equity company also owns.

Richard Baker, the new CEO of HBC told CTV News that while there are no plans for name changes to any of the Bay stores, some of the stores are too big and allow for multiple stores under the same roof.

"We have a lot of oversized Bay stores . . . there is an opportunity to shrink some of those Bay stores and perhaps, put Lord & Taylor stores adjunct to (those) Bay stores," he said.

"In the Canadian retail market there is a void between high-end retailers like Holt Renfrew and the Bay and we believe that Lord & Taylor could perhaps, fill that void."

The purchase of HRDC brings together HBC's Bay, Zellers, Home Outfitters with NRDC's Lord & Taylor group and the Fortunoff jewellery and home-d�cor chain.

The combined company will be known as the Hudson's Bay Trading Co and has 75,000 employees and annual sales totalling more than US$8 billion.

"You are seeing the two oldest department stores in North America getting together," BNN's Mark Bunting told CTV News Wednesday.

In the NRDC statement, it says the company's strategy is to focus on its new Bay stores by offering more and better brands.

The change in ownership follows the death of Jerry Zucker, the American who bought the Canadian retailer HBC for $1.1 billion in 2006. NRDC was a minority partner in the Zucker purchase.

Baker says that he understands the history HBC has in Canada and said, "we're tremendously honoured to be associated with this iconic Canadian brand."

"I promise our Canadian customers we will honour the traditions of the Hudson's Bay Company."

Both the Bay and Zellers will have new CEOs in the longer term, Baker said.

Comments are now closed for this story

Jane
said

I work for The Bay, and have for a long time. There is, and has been, nothing "Canadian" about HBC for many, many years. What exactly is everyone yearning for that is so uniquely canadian in a department store? All we have is a name that people recognize. The merchandise The Bay sells is the EXACT thing you would find in Lord and Taylor store in the US. I have shopped in both. In fact, Lord and Taylor carries many brands as yet unavailable in Canada.
Again, I ask, before you moan about losing "canadian identity", ask yourself if you can even define it.
One final thing: If an American owner can make HBC successful and retain jobs IN our country, would that be so bad?

Tired of ignorance
said

It would appear that most who have written comments, did nothing more than read the title. In case you didn't know there are words in the story which clearly state that that HBC was bought by an American firm from an American owner. HBC was sold in 2006.

Also another tid bit of info for you, Sears, Future Shop, Tim Horton�s, all owned by American companies.

Come on people, by writing without either thinking or reading the whole story you show just how uneducated some of you are.

brynny
said

I felt badly two years ago when The Bay was sold outside of the country.

Today my concern is about the number of resource companies and land companies that are being bought by Chinese and Middle Eastern money. Canadians will soon be "tenants in their own land".

Linda
said

I am not happy to see that The Hudson Bay Store has been sold to an American outfit.

What is wrong with Canadians? We are losing all of our traditions, first it was Eaton's and now it is the Hudson Bay. I for one do not want to become the Fifty 1st State. Why wasn't the The Hudson Bay bought by some of the millionaires we have in Canada?

Allie
said

ALAN ... GEE I HATE TO TELL YOU THIS, BUT SEARS WAS N E V E R CANADIAN! SEARS CANADA IS AND ALWAYS WAS A PART OF SEARS ROEBUCK WHICH IS .. WAIT FOR IT.. A M E R I C A N !!

GP
said

If they give me a fair value for my strong Canadian dollar I will jump all over this and they will have a loyal customer. If they become another retailer out to gouge the consumer I will continue to go south and shop online.

A downturn is coming...those who gouge are going to get theirs very soon.

wheatbeerdog
said

This is a pure form of capitalismm folks. It works well on both sides of the border. You buy, I buy, we all buy. Now, in Moscow, there's not even one department store; you buy off the black mrket. Therefore,all you nationalistic cry babies, head off to Woolco and buy. Oooh..that hurt!

Employee
said

The last owner who just died was American so that fact that it was yet again sold to an American doesn't really matter. What matters is will it's business improve or will they down size staff and locations cutting yet more "CANADIAN" jobs? If any of the locations change name will it possibly improve business environmants like downtown Winnipeg?

Aaron
said

The only culture we can hate in Canada and get away with is America. That being said when it comes right down to it I never noticed that the Bay or Zellers were less Canadian & more American after the first sale. In fact with the vancouver 2010 merchadise they seemed more Canadian. The Stores didn't change your perception chageed. How does it affect your day to day life. it doesn't get over it and move on.

Arthur
said

The whole issue of HBC being bought by an American came and went 2 years ago. If these American or whatever kind of retailers can do better then the retailers we already have then we will buy their products. And I haven't seen any American companies leaving anytime soon because we won't give them buisness.
And in the end they will also help boost the Canadian enconomy seeing as though us Canadians are too lazy to do that on our own.
And last but not least lets remember unemployment rates will also drop.

Lynne
said

Nothing new here to report. "Upscale clothing" in Winnipeg? I think not. Many people cannot afford to shop at The Bay as it is. To convert it into something even more "upscale" is foolish.

Chris
said

I think that the hudson bay company shouldnt be sold to an american retailer cause its a historical canadian business.

MLK
said

Come on people! When you enter a store, do you really think about who owns it?
Damn right I do. I do my best to support my country and the people who work here. Unlike people like you I AM PROUD TO BE CANADIAN. Supporting your own country should be a no brainer. It's getting harder and harder to buy Canadian. And yes Americans destroy a good thing every time look at ATI. Was top running video card manufacturer until AMD got a hold of. Dropped the Warranty from 3 years to 1. If you need support they blame everyone else. Love the fact that Americans are taking over this country.NOT!

Jess
said

I worked for the Hudson Bay Company for 7 years...it's sad to see that history has been sold to the US...

Martin
said

Considering that HBc was only in Canadian hands for a short time(70s to 90s) in it's long history I am not particularly concerned about another American group owning it. Had any Canadian group been willing to buy it it would have been nice but for some reason Canadians never seem to be in the market. Also the additional buying power could lead to lower prices.

CP
said

Does that mean Zellers is going to get a makeover also and be a bit more upscale. :)

DJC
said

Now if we could only get "TARGET" to buy out Zellers !!!
I would love to see TARGET in Canada. I don't shop the BAY, can not afford to.

critic
said

Have any of you been to the HBC and bought anything. The service is not bad it is not extinct in Calgary.
A lot of the product lines were probably bought from K-Mart.

This is a good day if we get better product and service.

Darren
said

Hopefully this will raise the standard of the shopping experience at The Bay. The US are so, so much better than Canada with their stores and malls eg. Nordstrom, Pottery Barn, etc.

Pebbie S.
said

Certainly I think this might help us in our area. The Bay Stores in our area are badly operated. Now onto the Zellers Stores, hopefully they will get rid of those stores also. The quality of merchandise and the poor staffing has made for a sad combination.
I say if an American can operate the business better for the consumer go for it. I am wanting better consumer service and we haven't had that with the Bay for a long time now.

Dennis P
said

That's the price of living in a Capitalist economy and also a sign of the times....like the man says, Canadian companies are buying up companies outside Canada & I don't hear anyone screaming to keep the money at home....we, as Canadians, have more important issues to concern ourselves with (sovereignty issues, immigration issues, medicare issues, etc.)...the sale of HBC, although painful, is relatively small potatoes, really.....

Rob from the Peg
said

Seriously, I can�t think of the last time I or anyone I know shopped at The Bay. The fact that it�s been sold to another US owner may make it more relevant to Canadians once again. Look what US ownership has done for Tim Horton�s.

Keith
said

Re ME:

Can't say as I'm a fan of WalMart either, but in my experience the amount of Canadian-made goods they carry is actually much higher than that found in Canadian Tire - or the Bay and Zellers even before Zucker bought them.

And WalMart didn't "force" Woolco out of business either - they were about to go under, so WalMart bought them as their entryway into the Canadian market. A quick way to get leases in major shopping centers to get us "acquainted" before they went big-box.

Finally, to add to the list of Canadian companies bought by Americans - Best Buy swallowed FutureShop a few years back...

Dylan in BC
said

I haven't bought much from The Bay since they were bought buy an American company a few years back anyhow. Another reason to continue not shopping there...

Mike
said

Everybody seems to complain loudly when Canadian firms are bought by foreign owners. But they either did so because (a) sales are great and they're an attractive company or (b) sales weren't great and they needed a white knight to help them. In this case, it's (b) because Canadians aren't shopping at Canada-owned retailers. They're shopping at H&M, Abercrombie and American Eagle. We can't expect Canadian companies to just continue without supporting them.

Wake up people
said

If Canadian Tire get sold to US company. You can get good oil change for $19.99.

Jim

Thanks for the laugh
said

Dr. Jack thanks for adding the comic relief in the thread. You couldn't be farther from the point of the article.

Max
said

I dropped my nostalgic sentiment for HBC years ago...when they became a crappy department store brand.

Outside of the main Queen & Bay store in Toronto, their establishments are usually a hodge-podge mess of overpriced, has-been "designer" junk. Their merchandising is/was always pathetic, in my opinion. Aisles scattered and clogged with blandness, and nothing in my "normal" size (assuming there was something I even wanted). Moreover, you usually have to conduct a formal search for someone to help you.

When Zucker bought the company, I thought he'd perhaps improve it. Nope.

No tears.

If Lord & Taylor can amount to a shopping experience that's worthwhile, I'll be impressed (surprised). Department stores seem to be a bit of a dinosaur nowadays. Too much mediocrity.

In the U.S., the upscale chains demonstrate what department store shopping should (and used to be) about. South of the border, I'm not sure Lord & Taylor truly represents an upscale brand.

Good luck to them. At least they'll add some spice to the boring and unenticing department store landscape here.

Allan
said

The department store industry in Canada has been convulsing for decades. There used to be Simpsons and Woodwards in certain parts of the country and then Eatons. All gone now. Woolco was bought by American Walmart and is growing successfully due to incredible marketing. I was waiting for something like that to happen with the Bay when Zucker bought it a few years ago but I guess he died too soon. We'll see if Lord & Taylor can bring the marketing savvy to the Bay empire that the Americans seem to excel at. Sears is already American. Remember Robert Campeau, the Canadian who tried to take over Bloomingdales in the USA? That began failing the minute he started. Canadians just don't seem to have what it takes to own and run large department store chains anymore. As far as Canadian Tire is concerned, it's virtually impossible to find a product in that store that isn't made in China. The only Canadian content there is the ownership - but at least their marketing seems to be working - at least so far.

buhbyecanada
said

Don't forget Molson, and Tim Hortons.
But the thing is ....we let it happen.

Steve W.
said

I can't believe us Canadians can't hold onto anything that is truely ours. But then again budweiser was sold off this week, so there you go!

Rick in Van
said

now if we can sell Roger's, Bell, Telus to the Americans and get better phone rates!

bobyourunkle
said

I'm with Jude lets sell Air Canada too so I can get from one side of Canada to another without going in debt.nobody's complaining about American owned Walmart since it's where most canadians shop.

Donald Bedier
said

That is the end of my dealings with The Bay. It means higher prices, and more clothing stores, neither of which we need

vahan
said

This is not a Canada/US thing. This is business. Your dollars and where you spend them will tell the retailers what to do. Like I mentioned before they all sell the same made in China garbage. It is up to you and your money to ask for better. Stop shopping at the boxmart, look at labels and pay the extra few cents for North American products. Your cheap gimme, gimme, I want, I want lifestyle is giving you a pablum, look alike lifestyle. Look at yourselves all in the same expensive cars you cannot afford, in the big energy sucking houses, queued up at the Timmies for cup of coffee in your dockers and 1.5 kids. Make a difference and move out of the burbs and buy local. Clones.

Greg from Nova Scotia
said

Why don't we put a "For Sale" sign on all Canadian businesses, that seems to be the trend. This is just another example of pure American economic expansionism. It is a shame.

david
said

Whine on Canada!

david
said

Come on people! When you enter a store, do you really think about who owns it?

Deena
said

The big deal about this week's sale is that they will be changing the names of many of the stores and making them Lord and Taylor ... it's the end of one of the oldest Canadian businesses and it's sad that no other Canadian business wanted to invest in order to preserve a little of our history. No wonder this country has the problems it does ...

Sue
said

How sad! Another Canadian icon sold out from under us and Americanized.

bunny
said

I wonder if there will be any staff in the stores now.I was at The Bay this morning, and not one salesperson was to be found.
no loss

Prairier shopper
said

So what about the fact that HBC got the rights to Canada's 2010 Olymic gear, after roots had it for years. Now an american company will produce the olympic fan gear in time for us to sport it as the host country? Does roots get that contract back?

bj
said

Bay was sold off the first time due to lack of interest on the part of the consumer and was resold because it isn't necessary to keep one's promise (to keep the name going)if you are a business.

History is History
said

I was already to type "A sad day for Canada", but fortunely I read the comment from Vahan, which put things into perspective. Well said.

Mark
said

I think it needs to be re-stated, even though it's already been said 3 or 4 times at least, that The Bay was already sold to Americans 2 YEARS AGO!

Get informed before you spout off!

Martin
said

This is yet another disappointment. However, we are told by some Canadians that we should refrain from this kind of economic nationalism. I feel it is a shame, but at the same time we are talking about a business. The role of the HBC in Canadian history cannot be taken away. So perhaps it would be better to take pride in Canadian ideas rather than businesses that only care about the bottom line? Just a thought...

ME
said

Yeh Jack, maybe they will do a better job like Walmart did when they forced Woolco out of business. Their merchandise is all American and not as half good as what Woolco had. I for one hate Walmart and their prices are no cheaper--I have often found things cheaper at other stores. It's all a gimic. Go to a Walmart store in the States and you will see we pay more in Canada and it's not just the cost of doing business in Canada. What was the book and magazine publishers response to Canada's call for fair pricing. They took the American prices off of the books. Canadians lose every time Americans come into our country to do business.

pat
said

It is sad to see that the new owners will be changing some of the HBC stores to another brand. But for those of you who are suprised, the store was bought by americans in 2006..not just today.

Jude
said

Now if we could only sell Air Canada and get rid of that albatross!!

joe vancouver
said

Who cares who owns it? It is a store not the Parliament buildings. get over it.

Matt F
said

I bet all you people who are moaning and groaning about the sale of HBC probably don't own or run a business.

If I had a business and the price is right, you sell.

You owe it to your shareholders to maximize their profits, that is the whole point of being in business...

heather
said

This is sad. But truthfully, the only good Bay Store is at Queen and Yonge. The rest, well, they aren't terrific! Maybe if we Canadians started supporting out local businesses, these takeovers wouldn't happen! Let see if Lord and Taylor and keep a market share here.

Marty
said

Canadia Tire
"American Tire"

Bombardier
"Bombarica"

Tim Horton
"Tim Houston"

Lavalife
"Lava Lamerica"

Canadian
"USamiliatan"

Resistance is futile.

I actually wouldn't mind if part of our medical infrastructure got assimilated. Maybe I could pay for service and actually get service.

Carlo Dimarco
said

"Are we a country of whiners??"

You bet. whiners is middle name for Canadians. First being contradictory.

Canadians buy companies all over world nobody complains about that.

Its Capitalism. I don't see any big Canadian companies coming forward to buy it back.
Get over it.

Annie
said

Who in Hell is Lord & Taylor? And who in Hell thinks we have the money to support another upscale store? We can not afford to drive or buy food let alone upscale shopping.

mel from calgary
said

What has been happening since 1988 is that Canadians are proving themselves poor retailers. Now under foreign ownership Dylex(TIP TOP etc), Birks, The Bay, Reitmans... Eatons was run into the ground. The only thing left is Loblaws and Canadian Tire.

How come Canada's business leaders are so unimaginative and afraid to venture out in the world?

Lex P.
said

Don't any of you realize this company lost its Canadian identity with the sale to Zucker????? What's the big deal now?

Dr. Jack
said

Interesting!!!

Nobody complains when Canadian corporations buy US companies at cheap prices. Nobody complains when thousands of Canadians buy properties from distressed Americans South of the border at "firesale" prices.

Are we a country of whiners??

Finally, Eaton's and The Bay run their companies into the ground.

Perhaps, the new owners will do a better job!

Mike Webster
said

This was a business decision. No Canadian buyers stepped up so a American company did. Nothing stopped a Canadian investor for offering a competing bid. Sure bug sales like this make the headlines but people ignore the fact that Canadian companies buy out foreign companies all the time. in fact, Canadian companies are more likely to buy foreign businesses than be bought out by foreigners. In any case, this doesn't really change anything. Personally, I haven't shopped at the Bay for years. I've never been a big fan. Someone mentioned Canadian Tire as a possible "sellout" but that isn't going to happen. For starters, Canadian Tire stores are franchaises and they are independently owned. Second of all, they are doing very well against their competitors and there really isn't any economic need for them to sell out.

John
said

It's a sad day for Canada...

Mike
said

Jerry Zucker was American....this doesn't change anything in terms of which "Country" owns Hudson's Bay. For those complaining, you're 2 years too late.

Craig
said

It's a good sign that HBC is so highly valued.

Vahan
said

Wow, Lord & Taylor stores in Canada! Honestly who cares. They all look the same, sell the same made in China garbage for an exaggerated price, and then discount them at up to 80% off. Now tell me about a retailer who is not out to screw the customer and honestly price articles in Canadian dollars and that will get me interested. 8 billion. As Archie Bunker used to say woopdedo...

Selling Canada
said

Yet one more piece of Canada sold to the United States. Are there any Canadian companies left!?

Kristen
said

This is a sad day. The oldest retailer in the continent (nevermind in Canada) who was responsible for opening up the countryside is now owned by Americans. Is nothing sacred anymore? At least Mr. Zucker had pledged to keep HBC the same. Is HBC going to go the way of Eaton's and the dodo bird?

Stevie
said

cheap sell-outs!

The money god demands to be fed...
said

Another of our historic institutions gets sold down the river to an American firm.

Too bad.
Eatons is gone..
Now the Bay..
Who's next?
Canadian Tire?

Today's World Stories

Police investigate the scene where a man who was believed to have shot and killed several people earlier in the day shot himself Wednesday, May 30, 2012, in the West Seattle neighborhood of Seattle.(AP / Elaine Thompson)

Seattle shooting suspect possibly shot himself: police

This combo made with undated photos made available by the Miami-Dade Police Dept. shows Rudy Eugene, 31, left, who police shot and killed as he ate the face of Ronald Poppo, 65, right, during a horrific attack in the shadow of the Miami Herald's headquarters

Face-chewing victim has months of treatment ahead

Former Liberian President Charles Taylor waits for the start of his sentencing judgement in the courtroom of the Special Court for Sierra Leone in Leidschendam, near The Hague, Netherlands, Wednesday May 30, 2012. (AP / Toussaint Kluiters)

Charles Taylor gets 50 years for 'brutal' crimes

More 5 2

Most Viewed News Stories

View More News Stories

Most Talked about Stories

While Branson's comments (and activities) are arrogant in a million different ways, Clark's response was admirable. She kept her sense of humour with her joke about Branson's brand-name and his bad pick-up line, showing why humour is often the best response to arrogance.

D Austin (Fredericton)

B.C. premier rebuffs Branson's naked kitesurfing invite

Got something to say? Share on CTV News

Pick your location

World -

News Sections

News Programs

Features

Browse: