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Calgary Herald
3 days ago
- Business
- Calgary Herald
‘I can feel their enthusiasm': Billionaire Ruby Liu holds job fair to bolster bid to take over HBC leases
Vancouver-based billionaire Ruby Liu was welcomed by dozens of former Hudson's Bay employees at a job fair in Toronto on Saturday, as her organization staged a recruitment event for new stores she plans to open up after taking over the Bay's leases. Article content Liu has not received court approval to take over 25 of the Bay's leases as per a deal inked in May, and has yet to satisfy the demands of some of the landlords who have raised concerns about her takeover and want her to submit a proper business plan. One of Hudson's Bay senior lenders filed a motion this month to terminate the deal with Liu, arguing that the delay is costing the company money. Article content Article content But none of these factors seemed to discourage Liu on Saturday, who danced with applicants, walked around with a selfie stick to take photos and promote the event on social media and even briefly paused her recruiting to sing the national anthem. Article content 'I am confident that we are going to get the stores, so we are preparing for that,' Liu, whose statement was translated, told reporters at the event. 'We have received almost a thousand resumés online. I wanted to meet these candidates in person. I can feel their enthusiasm.' Article content Liu agreed to take over the leases for 28 of 96 Hudson's Bay stores, all of which were shut down last month as Canada's oldest retailer, which filed for bankruptcy protection under the Companies' Creditors Arrangement Act in March, looks to pay back millions of dollars to its creditors. Aside from monetizing its leases, the Bay also fired all its employees, sold intellectual property rights to Canadian Tire and is looking to auction its valuable artifacts. Article content Article content Each of those steps, including Liu's deal, needs to be approved by an Ontario court. Article content Article content Last week, an Ontario court was supposed to make a decision on whether or not HBC should cancel Liu's agreement, but that hearing had to be postponed, mostly because Liu arrived at court without a lawyer. Article content Liu said that her previous legal counsel had quit on Sunday afternoon, ahead of the hearing, which took place on Tuesday. Article content 'Our previous legal counsel didn't help us submit the business plan to the landlords and some materials we hoped to submit,' she said. 'We are very disappointed.' Article content Article content But things have changed since then, said Liu, who hired a new lawyer and hopes to go to court in mid-August. 'We want to meet with the landlords more and more,' she said. 'It was not arranged in the past as we wished and we hope that will be happening.' Article content Liu said that she is willing to 'share the profits' with landlords from her flagship stores, which are going to be 'fun and exciting,' she said during a speech at the event.
Yahoo
15-07-2025
- Business
- Yahoo
Court decision on sale of 25 Hudson's Bay leases delayed as buyer appears without a lawyer
Ruby Liu, the British Columbia-based billionaire who wants to buy 25 leases from Hudson's Bay Co., was in court Tuesday to face concerns that her plans for the properties are not sustainable, but the hearing was adjourned because she showed up without a lawyer to make her case. Judge Peter Osborne said he is concerned about the additional costs — $4.7 million per month — that HBC and its lenders will have to incur as a result of the delay in completing the sale, but the significance of the decision requires that she elaborate on her plans so that all parties are aware of them. 'I not only urge you, but recommend in the strongest possible terms that these parties retain counsel immediately and they be made aware of the urgency of this situation,' he said. A lawyer representing Restore Capital LLC, the HBC lender that brought forth the motion to terminate the deal between the defunct retailer and Liu, said the delay was not good. 'The purchaser is a sophisticated party … and I wouldn't think it would be possible to simply delay and increase costs by terminating a law firm,' Linc Rogers said. 'That would be a wrong incentive to provide for participants in this proceeding.' Liu said she is ready to 'hire people, create jobs' and 'open stores,' and that she would hire legal counsel as soon as possible. 'We will work closely with HBC, and we have already hired experts,' she said. 'We submitted business plans on May 1, and then continually updated the business plans. We have done tremendous work.' Ashley Taylor, a lawyer representing HBC, said there has been ongoing dialogue and work with Liu to try to answer some of the landlords' questions and inquiries. But lawyers representing the landlords didn't share Taylor's optimism. One of them said that there has been 'zero discussion' with the landlord he represents, though Liu may have had internal discussions with HBC and other lenders. Alex Hennick, who heads A.D. Hennick & Associates Inc., a law firm that provides liquidation solutions and is not part of the HBC hearing, said it was evident that the landlords don't want to lease to someone they don't have the confidence is going to be there long term. 'They don't believe that the model is going to work in the existing locations because it didn't exist for a historic retailer who was there for so many years,' he said. 'It's a very unique situation. It's not common. The reason it is being blocked is because no one really believes it could be a successful venture.' Canada's oldest department store filed for bankruptcy protection under the Companies' Creditors Arrangement Act on March 7. It has been selling its leases, intellectual property rights and artifacts since then and cut its workforce to pay back its creditors ever since. Hudson's Bay fights back against lender that wants to terminate lease sales to Ruby Liu Why the demise of Canadian retail's 'middle class' won't end with Hudson's Bay The retailer inked an agreement to sell up to 28 leases in Ontario, Alberta and British Columbia to Liu's Tsawwassen, B.C.-based company, Central Walk, on May 23. An Ontario court approved the sale of three of those leases, but the remaining 25 have yet to be approved. • Email: nkarim@
Hamilton Spectator
28-06-2025
- Business
- Hamilton Spectator
Hudson's Bay landlords don't want Liu to move in, but retailer still has a shot
TORONTO - A group of Hudson's Bay's landlords don't want to transfer more than two dozen leases to British Columbia billionaire Ruby Liu, but the department store still has a chance to get its way. The Bay, which filed for creditor protection in March, ran a process over the last several months to find buyers for leases belonging to it and Saks Canada. It agreed to sell up to 28 spaces to Liu. Three leases were transferred to her without any hiccups because they're in B.C. malls she owns, but another 25 are at properties held by a who's who of Canadian commercial real estate firms. Landlords for 23 of those sites oppose the transfer. Several have said in court they've been 'very troubled' with their interactions with Liu and have had 'no productive discussions, no meaningful disclosure.' Liu insists if the court hands her the leases, landlords will warm to her and her plan to open a new department store in their properties. While the disagreement could serve as a roadblock to the Bay closing on its agreement with Liu, lawyers not involved in the case say the retailer has another route it can take to get a deal done. That route lies in changes to the Companies' Creditors Arrangement Act — Canada's main insolvency law — made in 2009, said Jeff Lee, a Saskatoon-based partner at MLT Aikins LLP. The changes laid out three criteria courts must consider when asked to assign leases to a new tenant. The first is whether or not the sale has the support of the monitor, a court-appointed, independent third party which helps guide businesses through creditor protection. In the Bay's case, the monitor is Alvarez & Marsal. It has yet to reveal whether it supports the Liu deal and did not respond to requests for comment. 'Before any court application is brought forward, typically the company will test that out with them,' Lee said. 'They're not going to just sort of fly in blind and hope for the best.' The second aspect for the court to mull is whether the proposed new tenant is suitable. Lee said that's determined by looking at whether they can perform the duties of the tenant and pay rent. Liu, who made her money in Chinese real estate, appears to have deep pockets but her experience comes from being a landlord rather than a tenant. The final aspect the court will consider is whether a transfer of a lease to Liu is 'appropriate.' Lee said people should think of it as asking this question: 'Is what's proposed for this post-assignment lease relationship what people signed up for, or are they seeking to rewrite the lease or change the playing field so radically that it's not appropriate?' That's where much of the tension could lie in the Bay case. 'You can't go into CCAA as a tenant and then force your landlords to renegotiate their leases as a result,' said Peter Tolensky, a Vancouver-based partner at Lawson Lundell LLP. The Canadian Press obtained a document last week that Liu's lawyer sent landlords outlining her plans. It says she will take on the leases on an 'as is, where is' basis but doesn't mention the dining, entertainment, children's and fitness experiences she's told media she'd like to include in her department stores. It's unclear whether the leases allow for uses other than a Bay-like department store. A court faced with a request to reassign leases will weigh this context and think about whether 'the landlord's world is being turned upside down by having this new tenant,' said Geoffrey Dabbs, a B.C.-based founding partner at Gehlen Dabbs Cash. 'The more it's a minor inconvenience for the landlord, the more likely the judge will order it,' he said. While the Bay hasn't said whether it will seek an assignment, it's likely because any company in creditor protection has a duty to show the court it's doing its best to pay back companies and people it owes money to, Dabbs said. The Bay has a 26-page list of creditors, with some lenders owed more than $100 million each. Liquidation sales and a deal to sell the Bay trademarks to Canadian Tire for $30 million have put a dent in what's owed but selling leases to Liu would also help. 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, in addition to $6 million for the three approved leases, which would equate to a purchase price of $100 million for 28 leases. When a deal like this is reached, Dabbs said a company typically seeks landlord consent because commercial leases tend to have provisions stopping anyone from transferring a lease without a property owner agreeing. It's not uncommon for landlords to object because any leases that can't be sold and aren't assigned get turned back over to property owners who can choose how to fill them and under what terms. 'Remember, these are anchor leases, so they're probably very favourable to the Bay or to the tenant in a lot of respects,' said Tolensky, alluding to the fact that anchor tenants are often given attractive rents or terms. Thus, it's more advantageous for landlords to get their properties back, said Monica Beffa, founder of an Oakville, Ont., law firm. If they do, they can then charge higher rents, develop them for entirely new uses such as residential units or break them up into smaller parcels that can be rented by a wide array of tenants. If they don't and a court assigns the leases to Liu, landlords will likely be watching her closely to ensure she doesn't violate any terms of the agreement. 'The landlord may be cranky, if the tenant breaches, but put it this way, they don't want to rely on that,' Dabbs said. 'If they don't want this lease being assigned, they will fight it right up front.' This report by The Canadian Press was first published June 28, 2025.
Global News
28-06-2025
- Business
- Global News
B.C. billionaire's plan to take over Bay leases facing legal battle
A group of Hudson's Bay's landlords don't want to transfer more than two dozen leases to British Columbia billionaire Ruby Liu, but the department store still has a chance to get its way. The Bay, which filed for creditor protection in March, ran a process over the last several months to find buyers for leases belonging to it and Saks Canada. It agreed to sell up to 28 spaces to Liu. Three leases were transferred to her without any hiccups because they're in B.C. malls she owns, but another 25 are at properties held by a who's who of Canadian commercial real estate firms. 2:00 What will Montreal do with the vacant Hudson's Bay building? Landlords for 23 of those sites oppose the transfer. Several have said in court they've been 'very troubled' with their interactions with Liu and have had 'no productive discussions, no meaningful disclosure.' Liu insists if the court hands her the leases, landlords will warm to her and her plan to open a new department store in their properties. Story continues below advertisement While the disagreement could serve as a roadblock to the Bay closing on its agreement with Liu, lawyers not involved in the case say the retailer has another route it can take to get a deal done. That route lies in changes to the Companies' Creditors Arrangement Act — Canada's main insolvency law — made in 2009, said Jeff Lee, a Saskatoon-based partner at MLT Aikins LLP. The changes laid out three criteria courts must consider when asked to assign leases to a new tenant. The first is whether or not the sale has the support of the monitor, a court-appointed, independent third party which helps guide businesses through creditor protection. In the Bay's case, the monitor is Alvarez & Marsal. It has yet to reveal whether it supports the Liu deal and did not respond to requests for comment. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Before any court application is brought forward, typically the company will test that out with them,' Lee said. 'They're not going to just sort of fly in blind and hope for the best.' The second aspect for the court to mull is whether the proposed new tenant is suitable. Lee said that's determined by looking at whether they can perform the duties of the tenant and pay rent. Liu, who made her money in Chinese real estate, appears to have deep pockets, but her experience comes from being a landlord rather than a tenant. Story continues below advertisement 1:47 Nostalgic Vancouver shoppers flock to 'The Bay' on its final day The final aspect the court will consider is whether a transfer of a lease to Liu is 'appropriate.' Lee said people should think of it as asking this question: 'Is what's proposed for this post-assignment lease relationship what people signed up for, or are they seeking to rewrite the lease or change the playing field so radically that it's not appropriate?' That's where much of the tension could lie in the Bay case. 'You can't go into CCAA as a tenant and then force your landlords to renegotiate their leases as a result,' said Peter Tolensky, a Vancouver-based partner at Lawson Lundell LLP. The Canadian Press obtained a document last week that Liu's lawyer sent landlords outlining her plans. It says she will take on the leases on an 'as is, where is' basis but doesn't mention the dining, entertainment, children's and fitness experiences she's told media she'd like to include in her department stores. Story continues below advertisement It's unclear whether the leases allow for uses other than a Bay-like department store. A court faced with a request to reassign leases will weigh this context and think about whether 'the landlord's world is being turned upside down by having this new tenant,' said Geoffrey Dabbs, a B.C.-based founding partner at Gehlen Dabbs Cash. 'The more it's a minor inconvenience for the landlord, the more likely the judge will order it,' he said. While the Bay hasn't said whether it will seek an assignment, it's likely because any company in creditor protection has a duty to show the court it's doing its best to pay back companies and people it owes money to, Dabbs said. The Bay has a 26-page list of creditors, with some lenders owed more than $100 million each. 2:08 Hudson's Bay last day Liquidation sales and a deal to sell the Bay trademarks to Canadian Tire for $30 million have put a dent in what's owed but selling leases to Liu would also help. Story continues below advertisement 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, in addition to $6 million for the three approved leases, which would equate to a purchase price of $100 million for 28 leases. When a deal like this is reached, Dabbs said a company typically seeks landlord consent because commercial leases tend to have provisions stopping anyone from transferring a lease without a property owner agreeing. It's not uncommon for landlords to object because any leases that can't be sold and aren't assigned get turned back over to property owners who can choose how to fill them and under what terms. 'Remember, these are anchor leases, so they're probably very favourable to the Bay or to the tenant in a lot of respects,' said Tolensky, alluding to the fact that anchor tenants are often given attractive rents or terms. Thus, it's more advantageous for landlords to get their properties back, said Monica Beffa, founder of an Oakville, Ont., law firm. If they do, they can then charge higher rents, develop them for entirely new uses such as residential units or break them up into smaller parcels that can be rented by a wide array of tenants. If they don't and a court assigns the leases to Liu, landlords will likely be watching her closely to ensure she doesn't violate any terms of the agreement. Story continues below advertisement 'The landlord may be cranky, if the tenant breaches, but put it this way, they don't want to rely on that,' Dabbs said. 'If they don't want this lease being assigned, they will fight it right up front.'
Winnipeg Free Press
28-06-2025
- Business
- Winnipeg Free Press
Hudson's Bay landlords don't want Liu to move in, but retailer still has a shot
TORONTO – A group of Hudson's Bay's landlords don't want to transfer more than two dozen leases to British Columbia billionaire Ruby Liu, but the department store still has a chance to get its way. The Bay, which filed for creditor protection in March, ran a process over the last several months to find buyers for leases belonging to it and Saks Canada. It agreed to sell up to 28 spaces to Liu. Three leases were transferred to her without any hiccups because they're in B.C. malls she owns, but another 25 are at properties held by a who's who of Canadian commercial real estate firms. Landlords for 23 of those sites oppose the transfer. Several have said in court they've been 'very troubled' with their interactions with Liu and have had 'no productive discussions, no meaningful disclosure.' Liu insists if the court hands her the leases, landlords will warm to her and her plan to open a new department store in their properties. While the disagreement could serve as a roadblock to the Bay closing on its agreement with Liu, lawyers not involved in the case say the retailer has another route it can take to get a deal done. That route lies in changes to the Companies' Creditors Arrangement Act — Canada's main insolvency law — made in 2009, said Jeff Lee, a Saskatoon-based partner at MLT Aikins LLP. The changes laid out three criteria courts must consider when asked to assign leases to a new tenant. The first is whether or not the sale has the support of the monitor, a court-appointed, independent third party which helps guide businesses through creditor protection. In the Bay's case, the monitor is Alvarez & Marsal. It has yet to reveal whether it supports the Liu deal and did not respond to requests for comment. 'Before any court application is brought forward, typically the company will test that out with them,' Lee said. 'They're not going to just sort of fly in blind and hope for the best.' The second aspect for the court to mull is whether the proposed new tenant is suitable. Lee said that's determined by looking at whether they can perform the duties of the tenant and pay rent. Liu, who made her money in Chinese real estate, appears to have deep pockets but her experience comes from being a landlord rather than a tenant. The final aspect the court will consider is whether a transfer of a lease to Liu is 'appropriate.' Lee said people should think of it as asking this question: 'Is what's proposed for this post-assignment lease relationship what people signed up for, or are they seeking to rewrite the lease or change the playing field so radically that it's not appropriate?' That's where much of the tension could lie in the Bay case. 'You can't go into CCAA as a tenant and then force your landlords to renegotiate their leases as a result,' said Peter Tolensky, a Vancouver-based partner at Lawson Lundell LLP. The Canadian Press obtained a document last week that Liu's lawyer sent landlords outlining her plans. It says she will take on the leases on an 'as is, where is' basis but doesn't mention the dining, entertainment, children's and fitness experiences she's told media she'd like to include in her department stores. It's unclear whether the leases allow for uses other than a Bay-like department store. A court faced with a request to reassign leases will weigh this context and think about whether 'the landlord's world is being turned upside down by having this new tenant,' said Geoffrey Dabbs, a B.C.-based founding partner at Gehlen Dabbs Cash. 'The more it's a minor inconvenience for the landlord, the more likely the judge will order it,' he said. While the Bay hasn't said whether it will seek an assignment, it's likely because any company in creditor protection has a duty to show the court it's doing its best to pay back companies and people it owes money to, Dabbs said. The Bay has a 26-page list of creditors, with some lenders owed more than $100 million each. Liquidation sales and a deal to sell the Bay trademarks to Canadian Tire for $30 million have put a dent in what's owed but selling leases to Liu would also help. 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, in addition to $6 million for the three approved leases, which would equate to a purchase price of $100 million for 28 leases. When a deal like this is reached, Dabbs said a company typically seeks landlord consent because commercial leases tend to have provisions stopping anyone from transferring a lease without a property owner agreeing. It's not uncommon for landlords to object because any leases that can't be sold and aren't assigned get turned back over to property owners who can choose how to fill them and under what terms. 'Remember, these are anchor leases, so they're probably very favourable to the Bay or to the tenant in a lot of respects,' said Tolensky, alluding to the fact that anchor tenants are often given attractive rents or terms. Monday Mornings The latest local business news and a lookahead to the coming week. Thus, it's more advantageous for landlords to get their properties back, said Monica Beffa, founder of an Oakville, Ont., law firm. If they do, they can then charge higher rents, develop them for entirely new uses such as residential units or break them up into smaller parcels that can be rented by a wide array of tenants. If they don't and a court assigns the leases to Liu, landlords will likely be watching her closely to ensure she doesn't violate any terms of the agreement. 'The landlord may be cranky, if the tenant breaches, but put it this way, they don't want to rely on that,' Dabbs said. 'If they don't want this lease being assigned, they will fight it right up front.' This report by The Canadian Press was first published June 28, 2025.
