Hudson’s Bay Co. is expected to seek court permission today to auction off its art, artifacts and the 355-year-old royal charter that launched the company, which announced Wednesday it will liquidate all its remaining stores.
The department store company, which is Canada’s oldest business, filed a notice of motion last week asking to separate the charter along with 1,700 pieces of art and more than 2,700 artifacts from an ongoing sales process.
An auction “is the most transparent, fair and efficient approach to monetize the art collection while recognizing and protecting its cultural and historical significance,” the company said in the motion it filed.
The move was meant to ensure the items get the “care, consideration and expertise” they need.
However, the potential auction, which Hudson’s Bay wants to be run by Heffel Gallery Ltd., has been a lightning rod for concerns from archival institutions, governments and historians who don’t want the pieces to be a second thought or fall into private hands.
Grand Chief Kyra Wilson of the Assembly of Manitoba Chiefs has requested a halt to any auction because of “the profound cultural, spiritual and historical significance to First Nations people.”
Her letter surfaced in court filings Wednesday, which revealed Hudson’s Bay will start selling off all merchandise on Friday at the six stores previously spared from liquidation.
A financial adviser for the company said it was making the move because of the “low probability” that it would find an investor or buyer that could restructure or maintain the business.
Hudson’s Bay has not detailed exactly what items it wants to hit the auction block beyond the charter granted by King Charles II in 1670.
The document not only established the fur-trading business but also gave the company rights to a vast swath of land spanning most of Canada and extraordinary power over trade and Indigenous relations for decades.
A source familiar with the auction process, who was not authorized to speak publicly, has told The Canadian Press the items proposed to be auctioned off include paintings dating back to 1650, point blankets, paper documents and even collectible Barbie dolls.
The Bay’s bid for permission to auction off its artifacts may be held up by a battle over which lawyers will represent employees.
After garnering interest from six firms wanting to represent the company’s 9,364 staff, Hudson’s Bay proposed the court appoint Ursel Phillips Fellows Hopkinson LLP.
The company liked the firm because it has “extensive experience representing large groups of employees and former employees in matters involving employment-based claims in respect of termination entitlements and benefits in insolvency matters,” chief financial officer Jennifer Bewley said in an affidavit.
The firm was involved in past creditor protection proceedings involving Sears Canada, Nordstrom Canada, Air Canada, Silicon Valley Bank’s Canadian branch and Essar Steel Algoma.
But its appointment is facing opposition from Koskie Minsky LLP, a Toronto law firm, which has been appearing at every Hudson’s Bay hearing “as de facto representative counsel.”
The firm said in a note to Ontario Superior Court judge Peter Osborne that its clients — 400 current and past employees — “do not trust HBC to select another law firm, and do not want to have HBC’s selection imposed on them against their wishes.”
It has asked for former associate chief justice of Ontario Douglas Cunningham to be appointed to recommend which firm should be used.
Ursel Phillips Fellows Hopkinson declined to comment.
Hudson’s Bay did not respond to a request for comment about the opposition to its choice of law firm.
