Hudson’s Bay has decided to return its previous stores to landlords, effectively putting an end to B.C. billionaire Ruby Liu’s attempt to acquire the leases of the bankrupt retailer. Franco Perugini, HBC’s senior vice-president of real estate and legal, mentioned in an email to The Canadian Press that the company is disavowing the leases for 25 properties that Liu sought to purchase. This legal action, known as a disclaimer, terminates a lease prematurely, relieving the tenant from responsibilities such as rent payments and property upkeep. Pending no objections from landlords, the HBC leases will be terminated by November 27.
Linda Qin, a representative for Liu, did not immediately respond to inquiries regarding the disavowals. HBC vacated 80 of its stores and an additional 16 under its Saks banners during the summer after filing for creditor protection and selling off its inventory. Liu had attempted to acquire up to 28 of these leases to establish a new department store bearing her name.
While HBC quickly gained court approval for Liu to acquire three leases in B.C. malls she owned, the remaining 25 leases were fiercely contested by landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge. They opposed Liu as a tenant, arguing that her business plan was inadequate and she lacked experience. Liu maintained that she was capable of taking on the leases and offered substantial financial investments for staffing, inventory, and renovation to revitalize the locations.
Despite HBC’s insistence on the sale to help repay its creditors, a judge ruled in favor of the landlords last month, expressing doubts about Liu’s ability to fulfill the lease terms. Following this decision, HBC did not indicate whether it would appeal but the lease disclaimer suggests they will not pursue the sale further. Oxford Properties spokesperson Josh Burleton stated that HBC’s decision to disclaim the leases provides closure to a lengthy and costly process, enabling them to proceed. Oxford Properties, a division of the Ontario Municipal Employees Retirement System, prioritizes safeguarding assets that support employees and pensioners.