Hudson’s Bay Lease Sales Stir Up Courtroom Drama Across Canada
So, here’s what’s going on with Hudson’s Bay — and it’s a bit of a retail roller coaster.
Earlier this year, Hudson’s Bay Company, the iconic Canadian department store chain, filed for creditor protection. That move followed the complete shutdown of all 80 of its stores and 16 more under its sister brand, Saks. With nearly a billion dollars owed to creditors, the company began selling off its store leases to recover some cash. It sparked a scramble among potential buyers across the country, and now we’re seeing some big developments.
One of the key players in this story is Ruby Liu, a billionaire from B.C. She’s been trying to buy up 25 of Hudson’s Bay’s former leases through her company, Central Walk. She already secured three of those — conveniently located in malls she actually owns — for $6 million. But for the other 25, things are getting tricky.
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A major roadblock? Landlord approvals. Unlike those first three leases, many of the other property owners aren’t exactly rolling out the welcome mat. In fact, Cadillac Fairview, which is one of Canada’s largest mall operators, is strongly opposing the deal. They’ve gone as far as filing objections in court, saying Liu’s plans are vague and unproven, and that handing over prime mall real estate to an untested retail concept could result in massive losses.
Adding to the drama, Liu hasn’t helped her case much. At a recent court hearing, she showed up without a lawyer or even the documents needed to make her argument. That prompted the judge to hit pause on the whole thing and recommend she get legal counsel — urgently. The hearing’s now rescheduled for August 28, but the longer this all drags out, the more it’s costing everyone involved — at least $4.7 million a month, just in holding costs.
Meanwhile, Hudson’s Bay is still trying to close deals with other buyers. For instance, YM Inc., the company behind Urban Planet and Suzy Shier, has agreed to buy five leases for just over $5 million, although three others fell through due to lack of landlord consent. Another lease at Metrotown was picked up by Ivanhoe Realties for a relatively modest $20,000.
With all of these transactions still awaiting court approval, Hudson’s Bay is now asking for more time — until the end of October — to finalize deals, hold art auctions, and do whatever it can to maximize returns for its creditors.
So, while the Bay may have closed its doors, its lease story is still very much unfolding in courtrooms and boardrooms across Canada.
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