The royal charter which launched Hudson’s Bay Company, issued by King Charles II in 1670.HO/The Canadian Press
Several government organizations have sent letters expressing concern to Hudson’s Bay Co. and others involved in a proposed auction of its art and historic artifacts, including the 1670 charter that launched the company and played a significant role in the country’s history, court documents show.
The Globe and Mail first reported earlier this month that the collection was featured in a confidential information memorandum sent to potential bidders for the company’s assets and operations. Last week, Hudson’s Bay Co. confirmed it will seek court approval to auction off that collection, which includes more than 1,700 pieces of art and more than 2,700 artifacts, including the charter.
The collection has drawn 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 on Thursday by Adam Zalev, co-founder and managing director of Reflect Advisors LLC, which is overseeing the sale process.
Facing a financial crisis, Hudson’s Bay was granted court protection from its creditors on March 7 under the Companies’ Creditors Arrangement Act. On Thursday, the company filed a motion seeking court approval for the auction, to be conducted separately from the broader sale process.
But the plan has raised concerns among experts in the preservation of historical archives that significant items could end up in private hands.
Hudson’s Bay and its adviser, as well as the monitor overseeing the CCAA process, have 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.
Several parties advocated for the collection to be “available for public viewing in a museum or other public institution,” the affidavit stated.
“I don’t think that we can underestimate the impact that Hudson’s Bay has had, and its importance to Canadian history,” said Leslie Weir, the Librarian and Archivist of Canada.
While Library and Archives Canada is not among the organizations that have sent letters to Hudson’s Bay regarding the auction, she said it is among the organizations following the situation, and looking for more information about what is included in the collection, aside from the charter.
The 1670 parchment gave the company exclusive trading rights over nearly one-third of what is now Canada. Relying on the doctrine of terra nullius, the charter claimed dominion over that territory without the consent of Indigenous peoples already living there.
Because of that significance, experts in the preservation of historical archives have raised concerns about whether the auction could result in the charter falling into private hands – or even leaving Canada.
“We would hate to see some of the key documents and artifacts leave Canada,” Ms. Weir said.
Canada’s Cultural Property Export and Import Act restricts the export of objects that are deemed of “outstanding significance” and “national importance.” But even in cases where an export permit is denied because an object falls under those categories, the owner can bring the matter before a review board.
The review board can delay the export “if it is of the opinion that a fair offer to purchase the object might be made by an institution or public authority in Canada.” If no such offer emerges, the item can leave Canada.
However, the same law also created one of the most generous tax credits in Canada for donations of such artworks and artifacts to public institutions. Many are hoping that will provide an incentive for a benefactor to bid on the Bay charter, and to keep it publicly accessible, Ms. Weir said.
Hudson’s Bay and Reflect, in consultation with the court monitor, have had discussions with experts and government entities about the collection.
“Reflect and the Monitor have become increasingly aware from these discussions that the Art Collection has important historical and cultural significance for many stakeholders,” Mr. Zalev’s affidavit said.
The company already donated a vast collection of historical objects and records to the Archives of Manitoba and the Manitoba Museum in 1994. But the charter and a number of other items remain in the possession of Hudson’s Bay.
According to the confidential memo obtained by The Globe, the collection includes store paraphernalia, packaging and a number of Bay point blankets – a fraught symbol of the fur trade and of colonization, which have been in continuous production since 1780.
Artworks in the collection include 17th- and 18th-century portraits, historical calendar paintings, Inuit prints and sculptures and photographic and limited-edition prints, according to the memo.
Reflect is in active discussions with three art auction houses in North America about proposals to conduct the auction, the court filing stated. The adviser expects to select one auction house by Thursday, when the company has requested a court hearing on the matter.
In the motion to amend the sale process and approve the auction, Hudson’s Bay’s lawyers wrote that it would be “the most transparent, fair and efficient approach to monetize” the art and artifacts, while protecting their “cultural and historical significance” and ensuring compliance with any applicable legislation.
With a report from Chris Hannay
