Hudson’s Bay is set to return its former stores to landlords, marking the end of B.C. billionaire Ruby Liu’s attempt to acquire the collapsed retailer’s leases. Franco Perugini, HBC’s senior vice-president of real estate and legal, stated in an email to The Canadian Press that the company is disavowing the leases for 25 properties that Liu sought to purchase.
A disclaimer, a legal tool that terminates a lease prematurely, will release HBC from obligations such as rent payments and property maintenance if no landlord opposes it. Perugini mentioned that the termination of the HBC leases is scheduled for November 27 if there are no objections.
Linda Qin, a representative for Liu, did not respond immediately to a request for comments on the disclaimers. HBC vacated its 80 stores and 16 Saks locations during the summer after seeking creditor protection and selling off its inventory.
When the leases were put up for sale, Liu aimed to acquire up to 28 properties to establish a new department store bearing her name. HBC swiftly gained court approval for Liu to purchase three malls in B.C. that she owned, while the remaining 25 leases faced challenges from landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge.
These landlords contested Liu’s bid to acquire the leases, valuing at $69.1 million, citing concerns about her business plan and lack of experience. Despite Liu’s commitment to invest in hiring, inventory, and renovations, a judge ruled in favor of the landlords last month, expressing doubts about Liu’s ability to fulfill the lease terms.
Following the court ruling, HBC did not indicate whether it would appeal but the decision to disclaim the leases suggests they will not pursue the sale further. Oxford Properties’ spokesperson, Josh Burleton, welcomed the move, stating it brings closure to the process and allows them to proceed. Oxford, a division of the Ontario Municipal Employees Retirement System, prioritizes safeguarding assets that support employees and pensioners.
