Additional lease agreements secured for Hudson's Bay retail properties
In the ongoing legal dispute concerning Hudson's Bay's proposed sale of up to 25 store leases to B.C. billionaire Ruby Liu, significant delays and resistance have arisen.
The court hearing scheduled for mid-July 2025 was adjourned, with Ruby Liu appearing without legal representation or adequate documentation to support her case. This lack of preparation prompted the judge to advise Liu to retain a lawyer to effectively present her plans.
Ruby Liu initially agreed to buy as many as 28 leases across Alberta, British Columbia, and Ontario from Hudson's Bay, with the intention of reviving department stores under her own brand. Although three leases in B.C. malls she owns have been transferred following court approval, the majority of the 25 remaining leases still require landlord and court approval. Many landlords have opposed Liu’s takeover, citing her failure to provide a comprehensive and viable business plan for the stores.
One of Hudson's Bay’s major lenders, Restore Capital (part of Hilco), is aggressively opposing the deal. Restore Capital has filed motions asking the court to terminate the lease sale, alleging the deal is “uneconomical and imprudent.” They argue that the prolonged delay in landlord and court approvals is wasting collateral, as Hudson’s Bay continues to incur millions in rent, property taxes, and related costs—estimated at over $4.7 million monthly by the court-appointed monitor—and professional fees potentially costing $8.5 million over a seven-week period.
Hudson’s Bay, however, is contesting Restore Capital’s efforts to terminate the deal. In court filings, Hudson's Bay maintains that proceeding with the sale is critical to recouping cash for lenders and creditors, and disputes allegations that it mishandled its liquidation process or the lease deal.
The situation remains unresolved, pending further court proceedings and the arrival of legal representation for Ruby Liu to properly advocate her case. The YM and IC transactions are part of the efforts being made by Hudson’s Bay, with the court approving a deal for Liu to pay $6 million for three leases at Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills.
Hudson's Bay is seeking an extension of creditor protection from July 31 to Oct. 31 to complete various transactions and measures, including the auction of its art holdings. The transferred leases were returned to Liu following the court-approved deal. The report was first published by The Canadian Press on July 25, 2025, and was filed by Tara Deschamps in Toronto and Ian Bickis, The Canadian Press.
Landlords are fighting against the sale of the additional 25 leases to Liu, citing lack of a credible and realistic business plan. The transactions being sought include the closure of YM and IC, seeking approval for the Liu deal, conducting an auction of art holdings, and other measures aimed at maximizing returns to stakeholders.
- The news about the ongoing legal dispute over Hudson's Bay's proposed sale of up to 25 store leases to Ruby Liu has sparked concern in the finance and investing world, as the uncertainty could impact the real-estate sector.
- The finance industry is closely monitoring the situation, particularly the allegations by Restore Capital that the deal between Hudson's Bay and Ruby Liu is "uneconomical and imprudent."
- As the court case proceeds, investors may aim to assess the potential risks and benefits associated with real-estate ventures involved in this business dispute.
