A wealthy individual from British Columbia who had been in a legal battle to secure former Hudson’s Bay properties faced a setback as an Ontario Superior Court ruling did not favor her cause. Judge Peter Osborne’s decision stated that landlords of the bankrupt retailer are not obligated to accept Ruby Liu as a tenant due to concerns about her ability to fulfill the lease terms she sought.
HBC chose not to comment on the ruling, and a representative for Liu did not respond immediately to inquiries from The Canadian Press. Both parties have the option to appeal the decision, although no official announcements have been made regarding such intentions.
Prominent property owners such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge opposed Liu’s bid to acquire 25 ex-Hudson’s Bay leases for $69.1 million. Osborne’s ruling, which followed extensive review of extensive documentation from various commercial real estate players, marked the end of a months-long process.
In March, Hudson’s Bay, burdened with significant debt, entered creditor protection proceedings. Following the closure of its stores, the focus shifted to selling assets like leases and intellectual property. Liu emerged as a major bidder, aiming to establish a new department store chain bearing her name. While some leases were approved, the fate of the remaining ones became contentious.
Landlords raised objections regarding Liu’s lack of readiness, absence of a comprehensive business plan, and doubts about her financial capabilities. Liu defended her position, citing her success in Chinese real estate and the operational efficiency of her existing malls in Canada. The Bay and Pathlight Capital suggested that landlords resisted Liu’s bid to regain control of their properties and seek higher rents.
The court decision, based on the Companies’ Creditors Arrangement Act, weighed Liu’s suitability as a lessee and the feasibility of her proposal. The appointed monitor expressed confidence in Liu’s financial capacity but highlighted concerns about her lack of experience and readiness for the substantial undertaking.
