Cadillac Fairview has reaffirmed its strong opposition to Ruby Liu’s proposed acquisition of another 25 leases of former Hudson’s Bay Company (HBC) store spaces.

Toronto-based CF warned in a new court filing that the deal could cause “serious material prejudice” to landlords across the country. CF also claims that it could face “losses in the hundreds of millions of dollars” if the deal is approved.

Liu, a B.C.-based billionaire, is seeking to acquire the leases through her company, Central Walk. The strongly worded filing serves as another roadblock that Liu must overcome in her quest to deploy the former Bay spaces in a new Canadian department-store chain bearing her name.

“CF remains resolutely opposed to the assignment of the former HBC leases to Central Walk/Ruby Liu Commercial Investment Corp.,” the company stated. “The Central Walk transaction will cause serious material prejudice to CF and other similarly situated landlords. If approved, the Central Walk transaction would potentially lock the landlords into multi-decade tenancies with an untested anchor tenant and a deeply flawed retail concept at 25 locations across Canada.”

The filing was in response to a new motion from court-appointed monitor Alvarez & Marsal requesting an approval hearing on September 11 or shortly thereafter.

Liu has already secured three leases of former Bay store spaces at three B.C. malls that she owns on the Lower Mainland and Vancouver Island. She is seeking to acquire leases of spaces that the Bay vacated elsewhere in B.C., as well as Alberta and Ontario.

The former Bay location at Canestoga Mall in Kitchener, Ont., is the only other known space that Liu is seeking to lease. But court filings indicate that CF and a subsidiary had 14 leases with the Bay, according to a published report.

Those leases cover major properties such as Richmond Centre in Richmond, B.C.; Market Mall and Chinook Centre in Calgary; and Sherway Gardens, Fairview Mall, and the Eaton Centre in the Greater Toronto Area.

CF said it met with Liu on June 2, but she failed to present a business plan. A brief follow-up letter on June 6 did not contain any substantive information, and the company says it has since made multiple unanswered requests for further details.

“Almost everything CF has learned about the purchaser’s proposed plans for the former HBC leases has come through the press and social media,” the filing stated. “If the applicants wish to pursue this motion, they must provide their case diligently to allow a fair response. They have not.”

CF also expressed frustration with the proposed timeline for the sale hearing, accusing the monitor and HBC’s senior lenders of giving themselves more time to prepare their case than they are allowing landlords to respond.

“The [asset-purchase agreement] was executed two months ago,” said CF. “Presumably, the applicants have been acting with due diligence to prepare their materials. They should produce these materials, together with supporting materials from Ms. Liu and the purchaser, this week, i.e. no later than July 25. Central Walk consents to this timeline.”

The targeted hearing date remains set for September 11, which CF does not oppose. In the meantime, Central Walk has begun hosting job fairs in Toronto, despite not yet having court approval to assume control of the 25 leases.

HBC was granted creditor protection on March 7, after which all of its Hudson’s Bay, Saks Fifth Avenue, and Saks OFF 5th stores were closed and liquidated.

The court approved a two-phase lease monetization process, which led to Central Walk reaching an agreement for 28 leases and the court subsequently approving the sale of the three B.C. leases tied to her malls.

But the remaining 25 leases continue to face significant resistance from landlords — with Cadillac Fairview leading the charge.

The Bay’s senior lenders are also seeking to quash the proposed deal.

Pictured: Hudson’s Bay store at Market Mall in Calgary.

Photo: Monte Stewart. All rights reserved. No republishing permitted.