TORONTO – Hudson’s Bay insiders, including Richard Baker, the executive chairman, have until the end of Monday to express their interest in bidding for the company's various assets or leases. This move comes amid ongoing processes aimed at gauging interest in the department store's physical and intellectual property, prompting the company’s leadership and affiliates to disclose any potential investment intentions.

Assets potentially up for auction include everything from leases to the rights of the iconic Stripes brand and even its art collection. However, Hudson's Bay has not specified which particular items are available for purchase. The company has opted not to comment on whether it or its affiliates, including Baker, will pursue any of the available assets.

If Baker and other insiders decide to bid on leases, they must inform Alvarez & Marsal, the third-party firm assisting Hudson's Bay during creditor protection, alongside real estate broker Oberfeld Snowcap Inc. Both firms did not respond to requests for comments regarding the receipt of any bids.

For any bids on assets beyond leases, it is important for insiders to alert both Alvarez & Marsal and Reflect Advisors, Hudson's Bay's financial advisor. Adam Zalev, managing director of Reflect Advisors, indicated in an email, “at this time it is not appropriate for us to provide comments to the media.”

Insiders typically place bids during creditor protection scenarios to acquire assets at significant discounts due to the financial distress of the company. Dina Kovacevic, editor of the Insolvency Insider newsletter, highlighted the advantages of such acquisitions, stating that it allows for the purchase of assets for considerably less than their market value outside an insolvency process, while also helping the company discard its liabilities.

Any offer made by Baker, who has asserted his intention to lead the company indefinitely, could prolong his tenure. Baker has been at the helm since his National Realty and Development Corp. Equity Partners acquired Hudson’s Bay in 2008 for $1.1 billion from the late businessman Jerry Zucker's widow.

Some analysts, such as Joanne McNeish, an associate professor at Toronto Metropolitan University, attribute Hudson's Bay's decline to Baker's acquisition, labeling it as "the point at which the company began its slow death." She compared investment firms to house flippers, suggesting that they often overlook fundamental business challenges.

Under Baker's leadership, Hudson's Bay went public in 2012, eventually returning to private status following a takeover bid that needed adjustments to secure shareholder approval just before COVID-19 lockdowns began in Canada. The company’s stock suffered during Baker’s tenure, leading to concerns about its future despite the belief that its extensive real estate holdings could be leveraged for a turnaround.

Many significant real estate holdings were sold off under Baker’s management. Last summer, Baker acquired Neiman Marcus and its Bergdorf Goodman brand for $2.65 billion, merging them with the Saks Fifth Avenue and Saks Off 5th chains to establish Saks Global, a move that set the stage for Hudson's Bay's creditor protection filing.

Liza Amlani, co-founder of Retail Strategy Group, pointed out that the assets Hudson's Bay offers may attract various investors due to their retained value, potentially at discounted prices given the company's troubled state. She mentioned leases, the Stripes brand, the housewares brand Gluckstein, and the discount chain Zellers as likely targets for investment.

Insiders at Hudson's Bay face a deadline to express their interest in the assets significantly earlier than external parties to maintain a fair sales process. Until internal stakeholders declare their intention not to bid, the court has mandated a restriction on information sharing to preserve the sales process's integrity.

Once outside parties show interest in acquiring Hudson's Bay assets, they will be required to sign non-disclosure agreements to access necessary financial information for evaluating potential deals. Additionally, landlords may opt to bid on leases to retain control over tenant occupancy in vacant spaces.

All interested parties, both internal and external, have until April 30 to submit binding bids for Hudson's Bay assets, with lease bids due by May 1. These submissions must include a refundable deposit of 10 percent of the proposed purchase price. Bids will be evaluated by Hudson’s Bay, Alvarez & Marsal, Oberfeld Snowcap, and Reflect Advisors, which will recommend the most attractive offers and may conduct auctions if multiple bids are received. The court's approval is essential for any sale, which must be secured by May 30, while unbidded or terminated leases must be officially disclaimed by July 15.