The announcement came Wednesday from the Canadian Museum of history that pending court approval, the Weston family will buy and donate the 1670 royal charter to them.HO/The Canadian Press
Canada’s billionaire Weston family has reached a $12.5-million agreement to buy the 1670 royal charter that launched the Hudson’s Bay Co., and to donate the historic document to the Canadian Museum of History, pending court approval.
The museum announced on Wednesday that the Westons’ holding company, Wittington Investments Ltd., plans to acquire the charter “for immediate and permanent donation” to its collection.
The move will ensure that the charter, which played a significant role in Canadian history, will remain in the country and accessible to the public – a concern that was raised by historians when news of the document being up for sale first became public.
The Globe and Mail was first to report in April that the charter was listed among a collection of art and artifacts that Hudson’s Bay intended to auction off, according to a confidential information memorandum sent to potential bidders and obtained by The Globe.
The Westons will pay “substantially” more than the value that the charter was appraised for in 2022, according to a court filing from Hudson’s Bay on Wednesday.
King Charles II issued the charter 355 years ago, granting to the Hudson’s Bay Company exclusive trading rights over a vast tract of land comprising the drainage basin surrounding Hudson Bay. The document relied on the doctrine known as terra nullius, to claim the land without the consent of the Indigenous peoples who already resided there.
“The Royal Charter has played a pivotal role in Canadian history, having a profound and lasting impact on First Nations, Inuit, and Métis communities,” the museum wrote in a press release issued on Wednesday. “The Charter is widely considered by historians to be a founding document of Canada, recognized for its significance in shaping the country’s early economic and territorial history.”
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The museum also noted that it will hold “a meaningful consultation process with Indigenous Peoples” to inform how the charter will be shared – including with other museums – and how it can be presented in a way that incorporates Indigenous perspectives. The Westons will donate an additional $1-million to the museum, to fund that consultation process.
Facing a financial crisis, Hudson’s Bay was granted court protection from its creditors in March, and has closed all of its department stores across the country last month, signaling the demise of Canada’s oldest retailer.
The sale of the company’s assets has since been conducted under court supervision, and has included selling the company’s intellectual property to Canadian Tire Corp. Ltd., and deals to transfer some of its store leases to new ownership.
While Hudson’s Bay and its advisors were developing the process for the auction of its art and artifacts, representatives from Wittington stepped forward to express interest in buying the charter, according to a court document filed by Hudson’s Bay on Wednesday. The company submitted its offer on June 18.
Reflect Advisors LLC, the advisory firm overseeing the Hudson’s Bay sale process, also had discussions with other parties who had expressed interest in bidding on the charter, according to court documents, but did not solicit offers from others and received no other unsolicited offers. Some parties discussed potential offer values, but all were “substantially less” than the Wittington bid, according to an affidavit sworn on Wednesday by Reflect’s co-founder and managing director Adam Zalev.
The deal for the charter will require court approval. A hearing has been scheduled for Sept. 9 into the matter. Financial terms of the deal were not disclosed.
The confidential memorandum advertising the sale described the charter as “foundational in understanding the country’s past,” and compared the value of the document to the American Declaration of Independence and the Canadian Constitution.
“At a time when Canada is navigating profound challenges and seeking renewed unity, it is more important than ever that we hold fast to the symbols and stories that define us as a nation,” Galen Weston, the chairman and chief executive officer of George Weston Ltd., said in a statement Wednesday. “The Royal Charter is an important artifact within Canada’s complex history. Our goal is to ensure it is preserved with care, shared with integrity, and made accessible to all Canadians, especially those whose histories are deeply intertwined with its legacy.”
Written on parchment and including the wax seal of King Charles II, the charter has been displayed at the Hudson’s Bay corporate offices in Toronto.
The art and artifacts collection drew interest from “a number of parties, including government and quasi-governmental institutions, museums, universities, and high net worth individuals acting on their own accord or as potential benefactors to certain Canadian museums and institutions,” according to an affidavit sworn in April by Mr. Zalev.
In addition to the charter, the company’s collection includes more than 1,700 pieces of art and more than 2,700 artifacts, such as store paraphernalia, packaging and a number of Bay point blankets.
A number of parties advocated for the Charter to remain accessible to the public, the affidavit stated.
Hudson’s Bay, Reflect, and the monitor overseeing the court process received letters from “several government organizations” detailing their concern about the transparency of the sale of the collection, as well as about the process adhering to laws and regulations “in respect of Canadian heritage and cultural property,” according to the affidavit.
The deal “ensures the Royal Charter — one of the most significant documents in Canadian history — will remain permanently held in public trust and will serve as a catalyst for national dialogue, education and reconciliation for generations to come,” Caroline Dromaguet, CEO of the Canadian Museum of History, wrote in a statement.