Hudson’s Bay is relinquishing its former store locations to landlords, signaling the end of B.C. billionaire Ruby Liu’s bid to acquire the bankrupt retailer’s leases. Franco Perugini, HBC’s senior vice president of real estate and legal affairs, announced in an email to The Canadian Press that the company is disclaiming the leases for 25 properties that Liu sought to purchase.
A disclaimer, a legal process that terminates a lease prematurely, absolves the tenant of responsibilities such as rent payments and property upkeep. Perugini stated that unless a landlord challenges the disclaimer, the HBC leases will be terminated on November 27.
Linda Qin, a representative for Liu, did not provide an immediate response to inquiries regarding the disclaimed leases. HBC vacated 80 stores and an additional 16 under the Saks brand during the summer after filing for creditor protection and liquidating inventory.
When HBC put its leases on the market, Liu aimed to acquire up to 28 locations to establish a new department store bearing her name. HBC swiftly secured court approval for Liu to purchase three malls in B.C. that she owned, namely Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills.
The remaining 25 locations faced contention from landlords like Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge, who opposed Liu’s tenancy. They argued that her business plan was inadequate and cited her lack of experience. Liu asserted her capability to fulfill the leases and offered a substantial investment for hiring, inventory procurement, and site renovations.
Despite HBC’s efforts to facilitate the sale to recover debts owed to creditors, a recent court ruling favored the landlords’ stance, expressing doubts about Liu’s capacity to meet lease conditions. Following this ruling, HBC’s decision to disclaim the leases signifies a cessation of the sale pursuit.
Josh Burleton, a spokesperson for Oxford Properties, commented that HBC’s lease disclaimer brings closure to a lengthy and costly process, enabling them to progress. Oxford Properties, affiliated with the Ontario Municipal Employees Retirement System, emphasized safeguarding assets during HBC’s liquidation to support employees and pensioners.