No decision on sale of HBC leases to Ruby Liu as judge says he has 'a few things to think about'
After two days of court hearings, the fate of Hudson’s Bay’s sale of 25 leases to British Columbia-based billionaire Ruby Liu for $69 million remains uncertain. Ontario Superior Court of Justice Justice Peter Osborne decided to reserve his decision following arguments from Liu, HBC, and several opposing landlords.
HBC, which filed for bankruptcy protection in March, is looking to repay its creditors by selling off assets, including leases. The proposed sale to Liu could recover over $50 million for creditors and create 1,800 jobs. However, landlords like Ivanhoe Cambridge and Cadillac Fairview Corp, Ltd have raised concerns about Liu’s business plan.
During the hearing, lawyers representing the landlords argued that Liu’s plan was not viable, citing a lack of funds for the proposed redevelopment of the stores. They expressed concerns about the potential negative impact on other tenants if the sale were approved.
On the other hand, HBC’s lawyer defended the sale, calling the landlords’ objections exaggerated and misguided. Liu also reassured the court of her commitment to the business’s success and offered to guarantee rent obligations for a year after acquiring the leases.
Liu’s vision for the stores includes a kids’ play area, Asian supermarkets, and immersive shopping experiences to attract younger shoppers. Despite the ongoing legal battle, she remains determined to see the deal through.
As the court considers the arguments presented, the future of the lease sale hangs in the balance. The decision will have significant implications for HBC, its creditors, and the retail landscape in Canada.
