Canadian First Nations leaders have urged a halt to the auction of historic items with connections to Canada's Indigenous peoples.

With Hudson's Bay Company going to court in pursuit of permission to auction off 1,700 pieces of art and more than 2,700 artifacts, the Assembly of Manitoba Chiefs is requesting a halt to the sale of items that may belong to or be linked with First Nations people.

Grand Chief Kyra Wilson wrote to the monitor (similar to an administrator under Australian law dealing with bankruptcies and restructuring) for Hudson's Bay, which is operating under court protection from creditors under the Companies' Creditors Arrangement Act, that there is "deep concern" over the potential auction of artifacts from its collection.

"Given the nature and scope of HBC's long-standing relationship with First Nations, it is likely, if not certain, that many of the artifacts slated for auction are of profound cultural, spiritual, and historical significance to First Nations people," she wrote in the letter sent Tuesday.

"Selling these items at auction without full transparency and consultation with impacted First Nations would not only be morally irresponsible but also represent a continuation of the colonial dispossession of First Nations' lands and belongings that the HBC directly profited from for centuries."

The CBC reports it is still unclear what specific artifacts could be included in the auction beyond the 355-year-old royal charter that launched the company.

Hudson's Bay announced Wednesday it will liquidate its remaining stores and has said an auction "is the most transparent, fair and efficient approach to monetize the art collection while recognising and protecting its cultural and historical significance".

Chief Wilson also requested the full catalogue of items being considered for liquidation be made public, and that a First Nations-led review process should be conducted.

"These artifacts are not simply 'valuable assets' or one-of-a-kind collectibles, but pieces of living history, some of which may be sacred, stolen from First Nations or properly First Nations-owned," she wrote to the monitor.

There has also been a call from experts, historians and other members of the public for the royal charter to be transferred to a public archival institution such as the Archives of Manitoba to ensure its preservation, rather than being sold to a private buyer.

Cody Groat, chair of the Canada Advisory Committee for Memory of the World - under the umbrella of the Canadian Commission for UNESCO - told the CBC the charter, granted by King Charles II in 1670, is "one of the most significant archival documents that exists in Canada".

Professor Groat, who is a member of Six Nations of the Grand River Reserve, called the document "foundational" to discussions around political governance in Canada and treaty negotiations with Indigenous people.

The charter, which established Hudson's Bay as a fur trading company, also granted it "semi-sovereign rights" which allowed it to operate both "as a business entity and as a colonial government at the same time," Professor Groat said.

"When we look at this, it's not just a document that established a business. It's a document that really created a unique political colonial structure in Canada."

Previously, a number of Hudson's Bay artifacts have been donated to the Archives of Manitoba. In 2007, these items received UNESCO's Memory of the World designation, meant to safeguard documents of historical and cultural importance.

The royal charter, which has remained in the company's possession, hasn't received that recognition.

Professor Groat told the CBC that to be designated, an item must be assessed to have been properly preserved according to archival conservation standards, and the general public must have reasonable access to it.

"What we're calling for is a recognition that this should not be viewed as just another corporate asset," he said.

"If a private corporation buys it, it could be designated, but it entering a public institution is kind of how we know it's going to be preserved in a way that it ought to be preserved."