A British Columbia billionaire who had been actively pursuing the acquisition of former Hudson’s Bay properties faced a setback following a ruling by an Ontario Superior Court judge on Friday. Judge Peter Osborne determined that the landlords of the bankrupt retailer were not obliged to accept Ruby Liu as a tenant. The judge expressed significant doubts about Liu’s ability to fulfill the lease terms she sought.
Hudson’s Bay declined to comment on the ruling, and Liu’s spokesperson did not respond immediately to inquiries from The Canadian Press. While both parties have the option to appeal the decision, no announcements of such plans have been made.
Prominent landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge opposed Liu’s bid to purchase 25 former Hudson’s Bay leases for $69.1 million. Judge Osborne’s decision, reached after reviewing a substantial volume of arguments, marked a significant development in the ongoing legal battle.
Hudson’s Bay, burdened by a $1.1 billion debt, filed for creditor protection in March, leading to the liquidation of its stores. Liu emerged as a key player by bidding for multiple leases to establish a new department store chain bearing her name. While some of her lease proposals were approved, others faced strong opposition over concerns about her business plan, financial capabilities, and proposed use of the properties.
Liu, with a background in Chinese real estate, defended her vision, citing her successful ownership of three malls as proof of her competence. The conflict between Liu and the landlords stemmed from differing interests, with the landlords seeking to regain control of their properties for potentially more profitable ventures.
The court’s decision hinged on the evaluation of Liu’s suitability as a lessee under the Companies’ Creditors Arrangement Act. Despite monitor Alvarez & Marsal’s belief that Liu could fulfill her financial obligations, concerns lingered about her readiness and experience in undertaking such a substantial endeavor.