Hudson’s Bay is moving forward with its commitment to sell leases to a B.C. billionaire by seeking court intervention to compel critical landlords to accept her as the new tenant. The department store filed a motion with the Ontario Superior Court to transfer 25 leases to Ruby Liu, covering properties in Ontario, Alberta, and B.C., including well-known shopping centers like Fairview Mall, West Edmonton Mall, and CF Market Mall.
Liu is set to pay approximately $69 million for the leases, along with additional fees. Hudson’s Bay believes that transferring the leases to Liu will enable it to repay creditors, provide jobs to former employees, and prevent prolonged vacancies in the properties, benefiting both parties. The company warns that rejecting Liu could result in missed opportunities and the return of the stores to the landlords.
The potential legal battle between Hudson’s Bay and major landlords such as Cadillac Fairview and Oxford Properties could lead to significant debt reduction for the retailer. Liu, a successful entrepreneur in Chinese real estate, has already secured the majority of the leases following a competitive bidding process, aiming to revitalize the properties with her new department store concept.
Although initial concerns were raised by landlords about Liu’s plans, she has since revised her business roadmap, outlining a $375 million investment for the venture. Liu plans to create flagship, platinum, and standard store tiers, promising to maintain the lease terms while focusing on enhancing the customer experience. She intends to allocate funds for necessary repairs, inventory, and job creation, projecting substantial annual sales by 2027.
Despite opposition from landlords, Liu remains optimistic about building positive relationships with them and the communities they serve. Her recent filing with the court demonstrates a commitment to her revised business strategy, highlighting potential partnerships with financial advisers while omitting previous consultant recommendations from the Bay.