B.C. billionaire Ruby Liu’s attempt to acquire up to 25 Hudson’s Bay leases faced a setback in court as she appeared without legal representation or supporting documents. Judge Peter Osborne postponed the hearing, emphasizing the importance of Liu hiring a lawyer to present her acquisition plans adequately. Liu had previously secured agreements to purchase 28 leases in Alberta, B.C., and Ontario from the defunct retailer, intending to rebrand them as department stores bearing her name.
Despite receiving court approval for three B.C. mall spaces, Liu encountered opposition from other landlords regarding the remaining 25 leases due to a lack of detailed business strategies. Bay lender Restore Capital LLC and its affiliate Hilco Global planned to challenge the 25-lease deal, citing concerns about its financial viability. The delay in obtaining landlord approval was highlighted by Alvarez & Marsal, estimating significant monthly costs while the deal remains pending.
In response to criticisms, Liu mentioned collaborating with HBC and hiring experts to address concerns. She expressed readiness to launch the stores but acknowledged the need for a new legal representative after parting ways with previous law firms. The ongoing legal dispute also involved discussions on appointing additional oversight for the Bay’s operations.
Despite facing scrutiny from landlords over her lack of experience and resources, Liu’s offer was chosen by Hudson’s Bay due to favorable terms. While her plans were met with skepticism, Liu remained confident in her ability to revamp the properties within a set timeline. The ongoing dialogue between stakeholders reflected varying opinions on the deal’s viability, with efforts to ensure creditor interests remained a priority.
Pathlight Capital LP supported Liu’s transaction, although concerns lingered about potential delays in finalizing the deal. The monitor overseeing the process indicated a willingness to increase supervision if deemed necessary. Additionally, the Bay was reported to have other lease agreements in progress, indicating ongoing developments in its restructuring efforts.