Latest news with #CentralWalk
Globe and Mail
2 days ago
- Business
- Globe and Mail
Ruby Liu lacks ‘foundational' experience to run former HBC stores, Cadillac Fairview CEO says
Landlords have yet to receive a 'meaningful business plan' from B.C. mall owner Weihong (Ruby) Liu, or any evidence that she has the experience necessary to run department stores in former Hudson's Bay spaces, the chief executive officer of one of Canada's largest commercial real estate companies says. Sal Iacono, the head of Cadillac Fairview, said in a statement on Wednesday that information on Ms. Liu's plans for the spaces are still lacking, 'despite multiple requests.' Ms. Liu, the chairwoman of Nanaimo, B.C.-based real estate investment company Central Walk, received court approval Monday for a $6-million deal to acquire the leases of three former Bay stores in malls that she owns. But court records show that her plan to acquire up to 25 additional leases has faced significant opposition from landlords. Landlords for 23 former Hudson's Bay locations oppose plans for Ruby Liu department stores Last week, The Globe and Mail reported that the pushback followed meetings between Ms. Liu and landlords earlier this month, in which she was unable to provide details about how she will operate the stores, according to two sources with knowledge of those meetings. In his statement, Mr. Iacono confirmed that was the case for Cadillac Fairview. 'Our sole meeting was brief, as she was unprepared to discuss her plans or present a business plan,' he wrote. 'We have not received any evidence of retail management expertise, established supplier relationships, logistical/e-commerce capabilities, or robust and realistic financial projections — elements that are foundational for even a single retail store, let alone 28 stores of this size.' In the days after those meetings, Ms. Liu sent a letter to landlords laying out further details of her plan, including a commitment to set aside more than $300-million to fund the operations of the business, according to a third source who has a copy of the document. The Globe and Mail is not naming the source because they were not authorized to discuss the confidential matter. The letter describes contact between Ms. Liu's team and more than 50 existing Hudson's Bay suppliers, who had expressed willingness to work with her, the source said. It also outlines plans to hire 2,500 to 3,000 employees and to hire executives with retail experience. It also specifies that Ms. Liu's team had already received more than 500 résumés from former Bay store employees. It also provides a financial forecast that predicts those stores would begin to turn a modest profit starting in 2026. In his statement, Mr. Iacono said the financial projections were not realistic. 'Drawing from our decades of extensive experience owning and managing the most prominent shopping centers across Canada, we believe that her claims of enabling retail jobs in Canada – a goal that CF supports – would be much better served if CF and the other professional landlords could proceed with securing established retailers with proven track records to occupy these former HBC boxes,' he said. 'This approach would provide real retail careers in firms that offer stable employment with proper training, benefits, and career progression in a professional retail environment.' Hudson's Bay was granted court protection from its creditors on March 7, as the company faltered under $1.1-billion in debt and faced mounting losses. Canada's oldest retailer has since closed all of its stores across the country. Ms. Liu has bid on the leases under a court-supervised sale process intended to generate funds to repay some of Hudson's Bay's lenders. Hudson's Bay granted creditor protection to restructure its business In an interview on Monday, Ms. Liu accused the landlords who oppose her of attempting to wait out that process, in hopes that they would be able to take back their spaces without paying for them. Department stores traditionally acted as anchor tenants, drawing foot traffic to malls. In return, those types of tenants negotiated leases with valuable conditions, including below-market rents and rights to approve any developments elsewhere in the malls. Some landlords may want to take those leases back, in order to redevelop the spaces and choose new tenants that would be a draw for shoppers and would be likely to succeed, paying higher rents over a number of years. The three HBC leases Ms. Liu has received court approval to acquire are located in the Mayfair Shopping Centre in Victoria, Tsawwassen Mills in Tsawwassen, just south of Vancouver, and the Woodgrove Centre in Nanaimo. In those and other spaces she may take over, Ms. Liu has told landlords that she plans to open a chain of department stores called Ruby Liu. The stores would offer a mix of fashion and jewellery products, dining spaces and would host events. Ms. Liu has made a $9.4-million deposit on her bids for the other 25 leases, according to court documents. That suggests that she has offered up to $94-million for those leases, because the sale process required deposits of no less than 10 per cent of each bid. Landlords who represent 23 out of the 25 remaining leases wrote letters to Hudson's Bay's lawyers and the court monitor overseeing the process, expressing concerns about the deal. Hudson's Bay to change its name, landlords express 'concern' over lease deal Those letters declared that 'based on the information provided to date, those Landlords would not consent to the assignment of their Leases to the Potential Lease Purchaser and would oppose any potential future forced assignment' by the court, according to a report filed by the court monitor, Alvarez & Marsal Canada Inc., last week. After Monday's hearing in Toronto, Ms. Liu said she believes landlords will support her if she wins court approval. 'Since everybody is mature businessmen, when the right decision comes, they will support it,' Ms. Liu told reporters on Monday, speaking in Mandarin while Central Walk chief executive officer Linda Qin translated. She added that work has already begun to plan for the future of the Hudson's Bay spaces. 'We need innovation. We need new ideas. And we want to bring in new blood, new things,' she said. 'Without new things and creativity, the industry will go down, not go up.'
Globe and Mail
4 days ago
- Business
- Globe and Mail
Court approves Hudson's Bay name change, sale of three leases to B.C. mall owner
B.C. mall owner Weihong Liu will move forward with plans to open department stores in three former Hudson's Bay locations, after receiving court approval on Monday to take over the leases. The three leases, for which Ms. Liu has agreed to pay $6-million, are located in the Mayfair Shopping Centre in Victoria, Tsawwassen Mills in Tsawwassen, just south of Vancouver, and the Woodgrove Centre in Nanaimo. The entrepreneur, who also goes by the name Ruby, has plans to open a chain of stores called Ruby Liu. But Ms. Liu, the chairwoman of Nanaimo, B.C.-based real estate investment company Central Walk, still faces opposition from landlords for 23 out of 25 leases she is seeking to acquire, in addition to the three approved on Monday. Struggling with mounting losses and $1.1-billion in debt, Hudson's Bay was granted court protection from its creditors on March 7 under the Companies' Creditors Arrangement Act. Canada's oldest retailer subsequently closed all its stores across the country. Ms. Liu submitted bids for a total of 28 leases under a court-supervised sale process. The three leases she will now acquire are located in malls that Central Walk owns. She has also made a $9.4-million deposit on her bids for the other leases, according to court documents. The sale process required deposits of no less than 10 per cent of each bidder's offer price for the leases, suggesting Ms. Liu has offered at least $94-million for those 25 leases. Following Monday's hearing at the Ontario Superior Court of Justice, Ms. Liu accused the other landlords of attempting to stymie the process so that the leases would be returned to their control. 'Since the lease has value itself, therefore everybody should follow CCAA, should follow Canadian law, to register, to participate in the bidding system, the process – and you should pay for the lease, since it has value,' Ms. Liu told reporters, speaking in Mandarin while Central Walk chief executive officer Linda Qin translated. 'You cannot just hope, and sit there, hoping to get the lease back for free.' Discussions with the other landlords are continuing as the company seeks their consent for the other deals, Maria Konyukhova, a lawyer with Stikeman Elliott LLP representing Hudson's Bay, told the hearing. Those deals would require court approval. In the absence of agreement from the landlords, the court could issue a 'forced assignment order,' something that lawyers for a number of landlords said at the hearing they would stringently oppose. Last week, The Globe and Mail reported that landlords were concerned, following meetings with Ms. Liu earlier this month, that she was unable to provide important information about her business plan for the stores. According to two sources with knowledge of the meetings, Ms. Liu did not specify which vendors would supply products to the stores, and where the funding would come from for urgent and costly repairs to the spaces, among other details. David Bish, a lawyer with Torys LLP representing mall owner Cadillac Fairview, confirmed during Monday's hearing that the company has not received sufficient information about Ms. Liu's plans. 'There have been, from Cadillac Fairview's perspective, no productive discussions, no meaningful disclosure,' Mr. Bish said, calling the discussions 'very troubled.' Lawyer D.J. Miller of Thornton Grout Finnigan LLP, representing Oxford properties, said her clients 'completely echo the concerns' expressed by Cadillac Fairview. Following the hearing, Ms. Liu said she believes the landlords will support her if the court decides in her favour. 'Since everybody is mature businessmen, when the right decision comes, they will support it,' Ms. Liu said. The process to sell off the leases for the Bay's stores and distribution centres drew 12 bidders. No bids were received for 62 of the locations, where landlords are taking back control of the spaces. Ms. Liu also has ambitions to expand the store network, with a particular focus on Ontario, Ms. Qin told reporters prior to the hearing. Ms. Liu said she intends to permanently relocate to Toronto and possibly move Central Walk's head office to the city. Ms. Liu has told landlords she wants to sell clothing and jewellery, as well as build dining spaces in the stores and host frequent events to draw in shoppers. 'The retail industry needs a newcomer, needs innovation,' Ms. Liu said. Also on Monday, the court approved a motion by Hudson's Bay Co. to change its name to remove any references to HBC or Hudson's Bay. The name change is a requirement of a $30-million deal to sell its intellectual property to Canadian Tire Corp. Ltd. That deal, which received court approval on June 3, specified the name change should occur within 45 days of the transaction closing – something that should occur on Monday or Tuesday, Ms. Konyukhova said. The company has not disclosed what the new name will be.
CBC
18-06-2025
- Business
- CBC
B.C. mall owner offers $6 million for 3 Hudson's Bay leases: court documents
Social Sharing The B.C. mall owner hoping to buy dozens of Hudson's Bay leases has offered $6 million to take over three locations in malls that she owns, describing it as just the beginning of a new department store empire. Weihong (Ruby) Liu's offer puts a $2 million price tag on each of the leases at Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre in B.C., malls she owns through her real estate business, Central Walk. The deal still needs court approval. It is separate from a bid Liu made for up to 25 other leases held by the Bay and sister companies Saks Fifth Avenue and Saks Off 5th. The new details about how much money Liu is putting behind her push to move into old Bay properties are in court documents filed by the 355-year-old department store. It asks a judge to greenlight the deal. WATCH | Liu seeking 28 Hudson's Bay leases: Billionaire mall owner looks to buy up to 28 Hudson's Bay leases 24 days ago Duration 6:59 In her first interview since Hudson's Bay announced it wanted to sell many of its leases to her, the Chinese billionaire and real estate entrepreneur said the initial $6 million was just a sliver of what she could spend on the entire 28-store package and overhaul that the sites need. "Mayfair Shopping Centre and Woodgrove Centre all require renovations since the equipment in stores was outdated, which requires me to spend at least $30 million on renovations," Liu said in Mandarin. The goal of the renovations will be to transform the business into a modern retailer she will name after herself and emblazon with a red jewel logo. WATCH | How the Bay should reinvent itself: How should the Hudson's Bay Company reinvent itself? 3 months ago Duration 9:14 Canada's oldest retailer, which operates the Hudson's Bay department stores, announced it is seeking creditor protection on Friday, but that it intends to hold onto many of its prominent locations. Retail strategist David Ian Gray said scaling down and exploring their own product lines could be options for the ailing department store chain. The stores are expected to include some former Bay vendors but would also have a product range well beyond the typical assortment for North American department stores. "We will try to include makeup, jewelry, beautiful clothing, a children's playground, [something for] seniors, tech products and fitness facilities in these three stores," she said. "I hope the mall can be a place to eat, drink and have fun." Several former Bay employees she has already hired will help her develop the new brand and revamp the Bay's vast spaces, including some that are in desperate need of repairs. Court records show the oldest of the leases in her three-store deal dates back to 1993 and is linked to Mayfair Shopping Centre in Victoria, where the Bay held a space spanning more than 166,000 square feet. A second lease for a 146,000-square-foot property at the Woodgrove Centre in Nanaimo was signed in 2000 and a third 32,700-square-foot spot for Tsawwassen Mills was occupied by Saks Off 5th. 25 other leases unclear Hudson's Bay started seeking buyers for its 96 leases in March after it filed for creditor protection and began an ultimately unsuccessful search for an investor or buyer that could keep the company alive. Real estate advisers had approached 60 firms in hopes of drumming up interest in the Bay leases. A dozen eventually made offers on a collective 39 locations. In May, Liu was chosen as the successful bidder for up to 28 leases in Alberta, B.C. and Ontario, but neither company has revealed exactly which locations beyond the three she owns are part of the deal. WATCH | What went wrong for Hudson's Bay: What went wrong with Hudson's Bay? 3 months ago Duration 5:49 Anyone who made an offer for leases had to make a deposit of 10 per cent of their estimated purchase price. Court documents show Liu made a deposit of $9.4 million, which would equate to a purchase price of just under $100 million. Any landlords who own properties that the Bay leased and Liu wants to move into must agree to the deal for it to move forward. Landlords were not part of the process that selected who would be given the leases and thus could choose to fight Liu's selection or compel her to meet the same terms Hudson's Bay and Saks had agreed to. Aside from Liu's deal, Bay lawyers have teased that two other companies interested in some of the department store's properties will be announced soon. Other than Canadian Tire Corp. Ltd., which was selected to purchase the Bay's intellectual property for $30 million, it is unknown who else made a play for leases.
CTV News
17-06-2025
- Business
- CTV News
B.C. mall owner offers $6 million for three Hudson's Bay leases: court documents
Ruby Liu, chairwoman of Central Walk, poses in this undated handout photo. THE CANADIAN PRESS/HO, Ruby Liu *MANDATORY CREDIT* New court documents show the B.C. mall owner hoping to buy dozens of Hudson's Bay leases has offered $6 million to take over three of the properties the department store used in malls she owns. The filing says Ruby Liu Commercial Investment Corp. offered $2 million each for Bay leases at Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre in B.C. Liu owns all three of the malls under her Central Walk business and has bid on up to 25 other leases held by the Bay. However, lawyers for the Bay have asked a court to approve the transfer of leases only for the three Central Walk locations so far. Liu declined to say how much she has offered for the other locations, but says $6 million for three stores is an average price. She will use the properties to open a new, modern department store that will also include entertainment, food and children's play spaces. This report by Tara Deschamps and Nono Shen, The Canadian Press, was first published June 17, 2025.
Yahoo
17-06-2025
- Business
- Yahoo
B.C. mall owner offers $6 million for three Hudson's Bay leases: court documents
New court documents show the B.C. mall owner hoping to buy dozens of Hudson's Bay leases has offered $6 million to take over three of the properties the department store used in malls she owns. The filing says Ruby Liu Commercial Investment Corp. offered $2 million each for Bay leases at Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre in B.C. Liu owns all three of the malls under her Central Walk business and has bid on up to 25 other leases held by the Bay. However, lawyers for the Bay have asked a court to approve the transfer of leases only for the three Central Walk locations so far. Liu declined to say how much she has offered for the other locations, but says $6 million for three stores is an average price. She will use the properties to open a new, modern department store that will also include entertainment, food and children's play spaces. This report by The Canadian Press was first published June 17, 2025. Tara Deschamps and Nono Shen, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
