Hudson’s Bay is relinquishing its prior stores back to landlords, marking the conclusion of B.C. billionaire Ruby Liu’s endeavor to acquire the failed retailer’s leases.
Franco Perugini, HBC’s senior vice president of real estate and legal affairs, informed The Canadian Press via email on Monday that the company is disavowing the leases for 25 properties that Liu sought to purchase.
A disclaimer, a legal procedure that terminates a lease prematurely, effectively absolves the tenant from obligations such as rent payments or property upkeep.
Subject to no objections from landlords, Perugini stated that the HBC leases will be formally terminated on November 27.
Linda Qin, a representative for Liu, did not respond immediately to inquiries regarding the disclaimers.
After filing for creditor protection and liquidating its inventory, HBC vacated all 80 stores and an additional 16 under the Saks banners during the summer.
Upon offering to purchase up to 28 leases when HBC put them up for sale, Liu aimed to establish a new department store bearing her name.
While HBC swiftly obtained court approval for Liu to acquire three leases in B.C. malls she owned – Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills – the remaining 25 leases were fiercely contested by landlords, including Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge. They opposed Liu’s tenancy, citing her inadequate business plan and lack of experience.
Despite facing resistance, Liu argued that she had the capability to fulfill the lease terms and pledged significant investments in hiring, inventory procurement, and site renovations.
With a substantial list of creditors owed approximately $1.1 billion at the commencement of its wind-down, HBC viewed Liu as a viable option to recoup some of the owed funds.
However, HBC’s hopes were dashed last month when a judge sided with the landlords, expressing doubts about Liu’s capacity to meet the lease conditions she sought.
Following the court ruling, HBC did not indicate whether it would appeal the decision. Nevertheless, the lease disclaimer suggests that the company will not contest the sale any further.
Josh Burleton, a spokesperson for Oxford Properties, noted that HBC’s decision to disclaim the leases brings closure to a prolonged and costly process, enabling them to progress.
Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System, emphasized the safeguarding of assets during HBC’s wind-down to support employees and pensioners.