Hudson’s Bay is relinquishing its former store locations back 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, communicated in an email to The Canadian Press on Monday that the company is disavowing the leases for 25 properties that Liu sought to purchase.
A disclaimer, a legal mechanism terminating a lease prematurely, allows the tenant to be released from obligations such as rent payments and property maintenance. Perugini mentioned that unless any landlord opposes the disclaimer, the HBC leases will be terminated by November 27.
Linda Qin, a representative for Liu, did not provide an immediate response regarding the disclaimers.
HBC vacated its 80 stores and an additional 16 under the Saks brand during the summer after seeking creditor protection and liquidating its inventory. When the leases were put up for sale, Liu intended to acquire up to 28 of them to establish a new department store bearing her name.
HBC swiftly obtained court approval for Liu to purchase three locations in B.C. malls that she owned, namely Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills. However, the remaining 25 leases were fiercely contested by landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge, who opposed Liu’s tenancy due to concerns about her business plan and lack of experience.
Despite Liu’s assurance of being able to fulfill the lease obligations by investing in hiring, inventory, and renovations, HBC faced pressure to proceed with the sale to help repay its creditors owed approximately $1.1 billion. Nevertheless, a judge ruled against HBC last month, expressing doubts about Liu’s capability to meet the lease terms she sought.
Following the court decision, HBC did not indicate whether it would appeal, but the lease disclaimer suggests that the company will not pursue the sale any further.
Josh Burleton, a spokesperson for Oxford Properties, stated via email on Monday that HBC’s decision to disclaim the leases brings clarity to the lengthy and costly process, enabling them to move forward. Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System, emphasizes safeguarding assets to support employees and pensioners.