In what signals a significant shift in Canada’s retail landscape, Hudson’s Bay Company plans to seek court approval this September for the sale of three prime mall locations in British Columbia—a transaction valued at approximately $78.6 million.
The iconic retailer, which filed for creditor protection in March, has reached an agreement with Quadreal Property Group to sell its leases at Coquitlam Centre, Richmond Centre, and Metropolis at Metrotown. This move represents a critical step in the company’s ongoing restructuring efforts as it navigates the challenging retail environment that has intensified since the pandemic.
“This transaction allows us to optimize our real estate portfolio while focusing on our most productive locations,” said Jeffrey Brooks, Hudson’s Bay’s Chief Restructuring Officer. “The proceeds will strengthen our financial position as we continue to transform our business for the modern consumer.”
Court documents filed last week reveal that the sale includes not just the leasehold interests but also fixtures and equipment at all three locations. The deal comes after months of negotiations and represents what industry analysts call “fair market value” in the current commercial real estate climate.
The Bay’s struggles mirror broader trends in traditional department store retail, where changing consumer habits and the surge in e-commerce have eroded foot traffic and sales. According to retail analytics firm RetailEdge, department store foot traffic in Canada remains 23% below pre-pandemic levels despite overall retail recovery.
For Quadreal, which manages the real estate program of British Columbia Investment Management Corporation, the acquisition presents an opportunity to reimagine these significant retail spaces. The property group has remained tight-lipped about specific plans, but experts suggest the spaces could be transformed into mixed-use developments combining retail with residential or office components.
“These locations represent some of the most valuable retail real estate in the Lower Mainland,” noted retail analyst Morgan Zhang. “The mall landscape is evolving rapidly, and this transaction gives Quadreal flexibility to adapt these spaces to changing consumer demands.”
The restructuring process has been closely watched by the CO24 Business sector, as Hudson’s Bay represents one of Canada’s oldest commercial institutions, with a history dating back to 1670. The company has already closed several underperforming locations across Canada as part of its strategy to create a more sustainable business model.
Industry observers point out that this transaction differs from typical retail bankruptcies, where stores simply close. “Hudson’s Bay is taking a more strategic approach,” explained retail consultant Emily Thornton. “They’re using the restructuring process to surgically remove underperforming assets while preserving their core business and brand equity.”
The court hearing is scheduled for September 18, 2025, when the Ontario Superior Court will review the proposed transaction. If approved, the transition of operations is expected to be completed by late 2025, with Quadreal taking possession of the properties by December.
For shoppers, questions remain about the future of these locations. Hudson’s Bay has indicated that the stores will continue to operate normally until the transaction closes, with details about potential closures or transitions to be announced following court approval.
As traditional retail continues its painful metamorphosis, Hudson’s Bay’s maneuvers may provide a blueprint for other legacy retailers fighting to remain relevant in an increasingly digital marketplace. The question remains: can Canada’s oldest retailer successfully reinvent itself while honoring its storied past?
