Hudson’s Bay is returning its former stores to their owners, ending British Columbia billionaire Ruby Liu’s fight to seize the bankrupt retailer’s leases.
Franco Perugini, senior vice-president of real estate and legal at Hudson’s Bay, specifies in an email to The Canadian Press that the retailer renounces the leases of the 25 properties that Ms. Liu coveted.
A waiver is a legal mechanism that terminates a lease before it expires and thereby releases the tenant from any obligations, such as paying rent or maintaining the property.
If no owner objects to the waiver, Mr. Perugini indicates that the Hudson’s Bay leases will be terminated on November 27.
Linda Qin, a spokeswoman for Ms. Liu, did not respond to a request for comment about the waivers.
Three leases purchased
Hudson’s Bay left its 80 stores and 16 others under the brand Saks Off 5th over the summer, after filing for protection from its creditors.
When the company put its leases up for sale, Ms. Liu offered to acquire up to 28 of them. She hoped to use them to open a new department store bearing her name.
Hudson’s Bay approved the project. The billionaire’s company quickly obtained court approval to purchase three leases in British Columbia shopping centers that it owned: Woodgrove Centre, Mayfair Shopping Centre et Tsawwassen Mills.
A saga concluded in court
The other 25 were the subject of strong opposition from the owners, notably Cadillac Fairview, Oxford Properties and Ivanhoe Cambridge. The landlords refused to accept Ms. Liu, who offered $69.1 million for the leases, as a tenant, arguing that her business plan was insufficient and that she lacked experience.
Ms Liu maintained she had the skills to take over the leases and proposed investing millions in recruitment, purchasing inventory and renovating premises.
Ruby Liu hoped to use 28 stores whose leases belonged to The Bay to open a new department store bearing her name.
Photo: The Canadian Press / Darryl Dyck
Hudson’s Bay insisted that the sale take place. The company had a long list of creditors to whom it owed about $1.1 billion at the start of its liquidation, and Ms. Liu represented one of their best chances of recovering some of that sum.
However, last month, Hudson’s Bay lost its case when a judge ruled in favor of the owners. He stated that he hadserious concerns
as to Ms. Liu’s ability to respect the terms of the leases she wished to enter into.
Following this decision, Hudson’s Bay has not said whether it will appeal, but the lease’s disclaimer suggests it will forgo further sales proceedings.
Owners will be able to move forward
Josh Burleton, speaker ofOxford Propertiesspecifies, Monday, in an email, that the decision of Hudson’s Bay to renounce the leasesbrings some certainty to this long and costly process and allows us to move forward
.
According to him, Oxford has always focused on protecting its assets during the liquidation of The Bay, as these are used to support employees and retirees.
Oxford is the real estate division of the Ontario Municipal Employees Retirement System, which manages the pensions of more than 600,000 members.
