The monitor overseeing the sale of former Hudson’s Bay Company leases is calling for an Ontario court to reject B.C. billionaire Ruby Liu’s proposal to take over 25 more store locations.

In a new filing with the Ontario Superior Court of Justice, Alvarez & Marsal said Liu’s plan to launch a retail chain under her own name is not sufficiently developed or realistic, warning the new business could become insolvent in the near term. Liu, who owns B.C.-based real estate firm Central Walk, has already acquired three leases in malls that her company owns through a $6-million deal approved earlier.

Her latest $69.1-million bid for 15 Ontario, five Alberta and five additional B.C. locations has drawn opposition from major landlords including Cadillac Fairview, Oxford Properties, Ivanhoé Cambridge and QuadReal, as well as from some Hudson’s Bay lenders.

Alvarez & Marsal said its investigation found that Liu’s leadership team is “a startup organization with no existing operations, no brand recognition, and no track record as a retail business.”

The monitor cited concerns over the group’s lack of operational experience, the sufficiency of the $375-million equity plan, the aggressive six- to 12-month reopening timeline and uncertainty around merchandise supply.

“The overall lack of experience at the leadership level represents a risk to the operational viability of launching and managing 25 large department stores in the contemplated timeline,” said Alvarez & Marsal.

The monitor’s view is expected to have a large influence on Judge Peter Osborne’s decision, potentially swaying the outcome.

Liu has countered that she will hire former Bay executives to manage her new chain. She also contends that the landlords are seeking to block the deal so that they can regain control of the spaces that, under the long-term leases, generate much lower rents than the Bay’s neighbours have paid.

A hearing on the matter is scheduled to be held August 28.

Pictured: Former Bay store at Conestoga mall in Kitchener, Ont., that is part of Ruby Liu’s proposal to acquire 25 leases.

Photo: Shutterstock