A wealthy individual from British Columbia who spent the summer engaged in a legal battle to acquire former Hudson’s Bay properties faced a setback with an unfavorable ruling from the Ontario Superior Court on Friday. Judge Peter Osborne decided that landlords of the bankrupt retailer were not obliged to accept Ruby Liu as a tenant due to concerns about her ability to fulfill the lease requirements.
Hudson’s Bay declined to comment on the court’s decision, and Liu’s spokesperson did not immediately respond to inquiries from The Canadian Press. Both parties have the option to appeal the ruling, although no such intentions have been disclosed.
Prominent landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge opposed Liu’s bid to purchase 25 former Hudson’s Bay leases for $69.1 million. Osborne’s verdict, reached after reviewing extensive arguments from various commercial stakeholders, marked the culmination of a lengthy process.
Following Hudson’s Bay’s filing for creditor protection in March due to substantial debt, the retailer liquidated its stores and assets, including leases and intellectual property. Liu proposed acquiring up to 28 leases to establish a new department store chain bearing her name, with three leases in British Columbia gaining court approval earlier.
The remaining 25 leases sparked contention as landlords raised objections regarding Liu’s preparedness, business plan, and financial capability. Despite Liu’s assertions based on her success in Chinese real estate and current mall ownership, landlords doubted her viability. The Bay and Pathlight Capital suggested that landlords sought to regain control of properties to secure higher rents and preferred tenants.
Osborne referenced the Companies’ Creditors Arrangement Act in evaluating Liu’s suitability as a tenant and the monitor’s endorsement. While the monitor believed Liu could meet financial obligations, concerns persisted about her inexperience and the challenges she might face.
The court’s decision underscores the complexities and conflicts surrounding the acquisition of Hudson’s Bay leases, with diverging perspectives on Liu’s capabilities and intentions.