Hudson’s Bay has finalized agreements to offload the leases of six store locations while legal disputes persist regarding the potential sale of up to 25 leases to B.C. billionaire Ruby Liu.
Legal documents reveal that clothing retailer YM Inc., known for brands like Urban Planet, Bluenotes, West49, and Suzy Shier, has secured a deal to acquire five leases for $5.03 million. However, landlord consents were not obtained for three other sites.
The five leases include properties at Vaughan Mills in Vaughan, Ont., Tanger Outlets in Kanata, Ont., Outlet Collection in Winnipeg, CrossIron Mills near Calgary, and Toronto Premium Outlets in Halton Hills, Ont.
Additionally, YM Inc. had expressed interest in purchasing leases in Pickering, Ont., Saskatoon, and a location in Edmonton for $1 million, but approvals from landlords were not obtained for these properties.
Separately, Ivanhoe Realties Inc. has committed to paying $20,000 for a lease at Metrotown in Burnaby, B.C., which is owned by its parent company Ivanhoe Cambridge.
These transactions, subject to court approval for lease transfers, represent Hudson’s Bay’s ongoing efforts to reimburse its lenders and numerous creditors owed nearly $1 billion collectively.
Earlier this year, Hudson’s Bay listed its leases for sale after filing for creditor protection and shuttering its 80 stores and 16 sister Saks locations.
A total of 39 properties received offers from twelve bidders, including Liu, who aimed to acquire several spaces.
Ruby Liu acquired three leases at malls she owns—Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria, and Tsawwassen Mills in Delta—for $6 million. This deal received court approval recently, allowing the leases to be transferred back to Liu.
Furthermore, Liu was selected by Hudson’s Bay to purchase 25 other leases, a move contested by landlords who argue that she lacks a credible or realistic business plan.
Hudson’s Bay is currently pursuing an extension of creditor protection until October 31 to conclude the YM and Ivanhoe transactions, obtain approval for the Liu deal, and conduct an auction of art assets to maximize returns for stakeholders.