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Hudson’s Bay Company has Threatened to Scrap Liu’s Lease-Purchase Deal
The Hudson’s Bay Company has threatened to terminate its proposed multi-million-dollar lease-purchase agreement with B.C. billionaire Ruby Liu, according to new court filings.
But in a later separate filing, the Bay also asked the court to approve the controversial proposed agreement. The more recent filing shows that Liu would pay $69.1 million and unveils the locations of the malls in which the former Bay stores are located, including 15 in Ontario, five in Alberta and five in B.C.
Liu, who owns three shopping malls and a golf course in British Columbia, signed two deals in May to purchase leases from the struggling retailer, which filed for creditor protection earlier this year under $1.1 billion in debt. The first deal, valued at $6 million for three leases in B.C. malls that she owns, was approved by the court in June. The second, involving 25 additional leases elsewhere in B.C., Alberta and Ontario, along with a $9.4-million deposit suggesting a total price of $94 million, has not yet been submitted for court approval.
The locations include such high-traffic as CF Sherway Gardens in Toronto, Ottawa’s St. Laurent Shopping Centre, CF Chinook Centre and CF Market Mall in Calgary, and West Edmonton Mall and Southgate Shopping Centre in Edmonton. The B.C. locations include CF Richmond Centre in Richmond, B.C.; Guildford Town Centre in Surrey, B.C.; and Coquitlam Centre in Coquitlam, B.C.
Liu said the agreement is at risk, claiming the Bay has repeatedly threatened to cancel the deal and retain her deposit. The filings include two letters that Liu and Linda Qin, CEO of her company Central Walk, sent directly to Ontario Superior Court Justice Peter Osborne. The letters prompted a rebuke from the Ontario Superior Court chief justice’s office.
The rebuke letter called Liu and Qin’s correspondence to Osborne “inappropriate” and directed the billionaire and Central Walk’s CEO not to send such letters again.
The Bay has until Tuesday to file a motion for court approval of the second deal. However, the proposal is facing opposition from several landlords, who say Liu has not provided adequate information about her plans for the leased properties. Hudson’s Bay lawyers have also expressed frustration, accusing Liu of failing to adequately prepare for landlord meetings or provide key details about her intended department- store concept, which would combine retail, dining, entertainment, and recreational elements.
The Bay’s senior lenders are also seeking to scrap the deal.
Liu plans to deploy the leases as part of a new department-store chain bearing her name.
The filings were posted on court-appointed monitor Alvarez & Marsal’s website.
Photo: Shutterstock
- ◦Lease
- ◦Sale/Acquisition
- ◦Development




