Latest news with #departmentStore
CTV News
28-06-2025
- Business
- CTV News
Hudson's Bay landlords don't want Liu to move in, but retailer still has a shot
Billionaire Ruby Liu listens during an interview at a former Hudson's Bay-owned Saks Off 5th department store after a "handover ceremony" where she received the keys to the space at Tsawwassen Mills shopping mall that she owns, in Tsawwassen, B.C., on Thursday, June 26, 2025. (Darryl Dyck / The Canadian Press) 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 Tara Deschamps of The Canadian Press was first published June 28, 2025.
CTV News
25-06-2025
- Business
- CTV News
B.C. mall owner lays out plan for Bay leases. Landlords are unconvinced
Ruby Liu is shown leaving court in Toronto on Monday June 23, 2025. The eccentric B.C. billionaire looking to turn Hudson's Bay's old digs into her own retail empire left court Monday with the beginnings of her venture in hand — and a looming fight that could curtail her full ambitions. THE CANADIAN PRESS/Nathan Denette TORONTO — A B.C. billionaire hoping to launch a new department store chain in former Hudson's Bay and Saks Canada spaces estimates she can have at least 20 locations up and running within 180 days of signing leases, but landlords aren't on board with her plan. The timeline is one of many highlights in a package prepared by Ruby Liu's lawyers and obtained by The Canadian Press. It was sent in early June to landlords of 25 leases she wants to take over. Lawyers for several, including Cadillac Fairview, Oxford Properties and Primaris, told a judge on Monday they've been 'very troubled' with their interactions with Liu and have had 'no productive discussions, no meaningful disclosure.' The 55-page package consists of a nine-page letter with several hallmarks of a business plan; it outlines everything from Liu's leadership experience to her hiring plans and is accompanied by a spreadsheet that offers prospective balance sheets and earnings forecasts. However, the bulk of the document is made up of prior court filings describing the general sales process for Bay leases, as well as a list of tenants at three malls Liu owns in British Columbia. Linda Qin, a spokesperson for Liu, did not refute the contents of the document. She said the team they're running is 'confident in our ability to successfully revitalize these retail spaces and fulfill our mission.' 'Since April, we have been actively advancing operational work at the store level and have made meaningful progress,' Qin wrote in an email. Liu maintains she has landlord support and is confident that if she gains approval to buy the leases, the opposing group will welcome her. Once she has the leases, she plans to develop a new department store she will name after herself and market with a scarlet jewel motif, a nod to her name. She has told The Canadian Press her retail stores would stock apparel, jewelry and makeup but also feature kids' play spaces, entertainment offerings, dining experiences and areas for cosplay — the practice of dressing up as fictional characters. However, it's unclear whether the Bay's leases allow for any uses other than a Bay-like department store and Liu's materials say she will take on the leases on an 'as is, where is' basis. 'Ms. Liu is not asking for lease-related concessions and will comply with lease terms,' her lawyer said in the letter. The document traces Liu's path from a high school student working in Harbin, China to an entrepreneur who opened and managed six restaurants in Shenzhen. By the time she had two kids, she had made the leap into real estate, where she co-developed a mall. In February 2019, it says the shopping centre was sold for $1.25 billion and she moved to B.C., where she bought and runs Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria and Tsawwassen Mills in Delta. On Monday, a court allowed her to purchase the three leases the Bay had in those properties for a total of $6 million. The letter Liu sent to other landlords shows she has budgeted $84 million to revamp properties covered by Bay leases she wants to obtain. In the Bay's final years, its stores gained a reputation for having broken escalators and malfunctioning air conditioning and sound systems. Another $96 million will be spent to ramp up inventory over the course of eight months. The document says Liu has met with more than 50 former Bay suppliers who are willing to sell or consign product to her. It does not name any of the suppliers. 'Based on our ongoing discussions, we foresee no issues with product availability,' Qin said. Yet Cadillac Fairview, one of the Bay's landlords, said it has not received any 'evidence of retail management expertise, established supplier relationships, logistical/ecomm capabilities, or robust and realistic financial projections — elements that are foundational for even a single retail store, let alone 28 stores of this size.' 'Our sole meeting was brief, as she was unprepared to discuss her plans or present a business plan,' CEO Sal Iacono said in a statement. Despite multiple requests, Liu has 'not provided a meaningful business plan or other requisite information to support her intentions,' he said. 'That is something that any prospective tenant would do.' The information Liu provided in the package shows she expects to lose $32.5 million for the balance of 2025, if she is able to obtain leases and open as planned. By 2026, she foresees a $31 million profit, followed by $35.5 million in earnings in 2027. Sales over those three years will reach $867 million, the plan says. To help her reach these forecasts, she expects to hire key execs and managers within 30 days of getting leases. Within 90 days, she says she will have hired thousands of staff and ordered inventory she forecasts will arrive by the 150-day mark. 'I really want her to succeed, but I just have too many questions,' said Elisha Ballantyne, a Toronto-based retail consultant. Ballantyne was part of the team that brought Target to Canada in 2013. Target's unsuccessful foray north of the border came after the U.S. retailer bought the leases of hundreds of Zellers outlets in 2011, when that banner began winding down. She recalls that Target, which eventually left the country in 2015, spent $10 million per property on renovations. Even with an experienced team and an existing supplier network to tap into, the supply chain was a challenge, as was hiring. The company started to bring on staff 15 months before opening. 'That was far too rushed and ran into so many problems, so how is she going to do this in six months?' Ballantyne questioned. Liu's letter says she has already reviewed more than 500 resumes from current and former Bay employees. At least 10 store-level managers, who have more than a decade of experience at the Bay, have committed to helping. The letter says Wayne Drummond, a former Bay president, has also been 'assisting with everything from securing suppliers and inventory to reviewing product mix.' Liu predicts she will need between 2,500 and 3,000 employees to open. While Cadillac Fairview said it supports her goal of creating retail jobs in Canada, they feel that ambition '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.' '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,' Iacono said. This report by Tara Deschamps, The Canadian Press was first published June 25, 2025.
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.
The Sun
16-06-2025
- Business
- The Sun
UK's most iconic department store plots its first shops outside London after 318 years in business
THE UK's most iconic department store plots its first shops outside London after 318 years in business. The upmarket store currently has four UK stores that are all based in the capital. 2 2 Fortnum & Mason was established 318 years ago in 1707 and was founded by William Fortnum, a footman for Queen Anne, and Hugh Mason, his landlord. The pair started operating from a small store in St James Market and a spare room in Mason's house. The store quickly became known for its innovative and high-quality products, appealing to the tastes of the affluent and aristocratic clientele. Throughout the 18th and 19th centuries, Fortnum & Mason expanded its offerings, becoming a purveyor of fine foods, wines, and spirits. Currently, Fortnum & Mason has stores in Piccadilly, St Pancras station, the Royal Exchange in Bank and in Heathrow Terminal. But now the upmarket department store is thinking about venturing outside of the capital. The retailer said earlier this year that it was no longer seen as a 'Christmas focused' business as shoppers were snapping up its luxury food products to 'stock their own larders' throughout the year. The retailer's chief executive Tom Athron told The Telegraph that he would be interested in having branches 'up the spine of the country'. He said the business would look at sites in a 'beautiful location' with 'beautiful architecture'. 'This isn't about ubiquity. But there are other locations across the country where we think that Fortnum could offer both retail and restaurants, where it would be relevant. The Viking Centre: Britain's first American-style mall faces demolition "And we're looking at those now,' Athron said. The news comes as the retailer says there is a surge in demand for its luxury teas, biscuits and jam. The store underwent a significant refurbishment in 2007, celebrating its 300th anniversary with a rejuvenated look that honoured its storied past. History of Fortnum & Mason Fortnum & Mason was established 318 years ago in 1707. It was founded by William Fortnum, a footman for Queen Anne, and Hugh Mason, his landlord. The pair started operating from a small store in St James Market and a spare room in Mason's house. The department store eventually set up shop at its current location at 181 Piccadilly. One of Fortnum & Mason's earliest claims to fame was its invention of the Scotch egg in 1738, a portable and filling snack ideal for travellers. The store quickly became known for its innovative and high-quality products, appealing to the tastes of the affluent and aristocratic clientele. Throughout the 18th and 19th centuries, Fortnum & Mason expanded its offerings, becoming a purveyor of fine foods, wines, and spirits. It was also during this period that the store became renowned for its hampers, which were meticulously curated and became a staple of British festivities and picnics. These hampers were often sent to British troops during times of conflict, providing a comforting taste of home. By the Victorian era, Fortnum & Mason had firmly established itself as a symbol of British luxury. The store's association with the royal family was further cemented when it was granted its first Royal Warrant by Queen Victoria. This distinguished honour recognised Fortnum's as a supplier of goods to the royal household, a tradition that continues to this day. The 20th century saw Fortnum & Mason adapting to the changing times while maintaining its commitment to quality and tradition. During both World Wars, the store remained open, offering solace and a sense of continuity to Londoners. Post-war, the store further diversified its range, introducing new departments and expanding its international reach. In more recent years, Fortnum & Mason has continued to evolve, embracing modernity while preserving its heritage. The store underwent a significant refurbishment in 2007, celebrating its 300th anniversary with a rejuvenated look that honoured its storied past. Today, it offers a wide array of products, from gourmet foods and fine teas to exquisite homewares and beauty products. It offers a wide array of products, from gourmet foods and fine teas to exquisite homewares and beauty products. is set to open more shops. Earlier this year ASOS also revealed plans to relaunch a Topshop website. .
