Court monitor says it doesn’t support Hudson’s Bay plan to sell leases to Ruby Liu

The court-appointed monitor overseeing Hudson’s Bay’s creditor protection case has raised concerns about a B.C. billionaire’s plan to buy more than two dozen of the retailer’s leases. Alvarez & Marsal, in a court filing, stated that it does not believe landlords should be forced to accept Ruby Liu as a tenant, despite her purchase of 28 of the Bay’s leases.

Liu’s deal to buy the leases for $69.1 million has faced opposition from lenders and landlords who argue that her plans for dining, entertainment, and recreational spaces within the department stores may not align with lease terms. They also question the feasibility of Liu’s timelines and budgets for necessary repairs and renovations.

In response, Liu maintains that the spaces were previously operated by the Bay without renovations and is willing to exceed her budget for any required work. A court hearing is scheduled to resolve the dispute, with Judge Peter Osborne set to make a ruling.

Alvarez & Marsal conducted a review of Liu’s business plan and relevant documents, expressing concerns about her lack of experience in retail operations. The monitor noted that Central Walk, Liu’s company, is a start-up with no track record or brand recognition. Additionally, Liu’s leadership team lacks experience, raising doubts about the viability of managing 25 department stores within the proposed timeline.

Despite Liu’s plans to open stores and invest in repairs and renovations, uncertainties remain regarding her supply chain management and inventory sourcing. The monitor highlighted risks associated with the compressed timeline and inventory requirements outlined in Liu’s business plan.

As the case unfolds in court, stakeholders await a decision on whether Liu will be granted the leases to proceed with her ambitious plans for the Hudson’s Bay properties.