Hudson’s Bay has decided to return its former stores to landlords, marking the end of B.C. billionaire Ruby Liu’s pursuit to acquire the retailer’s leases. Franco Perugini, HBC’s senior vice-president of real estate and legal, stated in an email to The Canadian Press that the company is disclaiming the leases for 25 properties that Liu sought to purchase.
A disclaimer is a legal tool that terminates a lease prematurely, freeing the tenant from responsibilities such as rent payments or property upkeep. Perugini mentioned that unless a landlord objects, the HBC leases will be officially terminated on November 27.
Linda Qin, a representative for Liu, did not immediately respond to requests for comments regarding the disclaimers. HBC vacated its 80 stores and an additional 16 under the Saks brand earlier in the summer after filing for creditor protection and selling off its inventory.
When the leases were put up for sale, Liu aimed to acquire up to 28 of them to establish a new department store bearing her name. The approval was swift for her to acquire three in B.C. malls she owned, but the remaining 25 faced strong opposition from landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge.
These landlords resisted Liu’s bid, offering $69.1 million for the leases, citing concerns about her business plan and lack of experience. Despite Liu’s assurances of financial investment in hiring, inventory, and renovation, a judge ruled in favor of the landlords last month, expressing doubts about Liu’s ability to fulfill the lease terms.
Following the court ruling, HBC did not indicate whether it would appeal. However, the decision to disclaim the leases suggests the end of the pursuit for the sale. Oxford Properties spokesperson Josh Burleton mentioned that this decision provides clarity after a prolonged and costly process, enabling them to move forward.
Oxford Properties has emphasized safeguarding its assets during HBC’s liquidation to support its employees and pensioners. Oxford is the real estate arm of the Ontario Municipal Employees Retirement System, overseeing the pensions of over 600,000 members.