RioCan REIT is seeking to put its joint-venture with the Hudson’s Bay Company into receivership, a new court filing shows.

All Bay stores and Saks-branded outlets closed Sunday.

“The proposed receivership proceedings will provide the appropriate forum to protect the interests of the stakeholders of the joint-venture entities and maximize value,” RioCan CFO Dennis Blasutti said in an affidavit filed as part of the application.

RioCan wants the court to appoint insolvency advisory firm FTI consulting as the receiver.

The JV comprises 12 properties that the iconic department-store chain leased from the partnership. RioCan has stated that the REIT indirectly holds a 22% stake in 10 retail properties that were exclusively tenanted by HBC. The 10 properties include the prime downtown Bay stores in Montreal, Vancouver, Calgary and Ottawa. As a result of HBC’s financial instability, RioCan has experienced reduced rent payments and significant uncertainty regarding the long-term viability of these locations, the REIT said in its latest quarterly report.

A first-quarter $208.8-million writedown effectively cut 83% of RioCan’s valuation in the partnership, leaving it at $41.4 million.

No parties bid to purchase the JV, its properties, or its leases, Alvarez & Marsal, the court monitor in the case, said in its latest case report.

An Ontario court judge is expected to consider the receivership application and other matters Tuesday.

Pictured: Hudson’s Bay store in downtown Montreal that is included in the RioCan-HBC joint-venture.

Photo: Shutterstock