A wealthy individual from British Columbia aiming to acquire certain leases from Hudson’s Bay has denounced claims by landlords that she won’t be able to operate a successful business in those locations as “misguided.” Ruby Liu expressed in recent legal filings that she is fully committed to ensuring the success of her venture and is willing to personally guarantee the initial year’s rent to boost landlords’ confidence in her proposal.
Liu, who intends to purchase 25 former Bay leases along with three additional properties she already owns in B.C., plans to transform them into a new department store featuring entertainment, dining, and recreational amenities. However, landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoe Cambridge have contested that their existing leases do not permit such activities and have raised concerns about the feasibility of Liu’s proposed timelines and budgets given the extensive repairs and improvements required for their properties.
A court hearing is scheduled for the end of August to determine whether landlords should be compelled to allow Liu to take over the spaces. Liu aims to open around 20 stores within 180 days of securing the leases, with estimated expenditures of $120 million for repairs to various facilities. While landlords anticipate higher renovation costs, Liu argues that many locations will only require minimal cosmetic changes rather than extensive overhauls.
In response to landlord criticisms, the Bay supported Liu’s position by highlighting its prior operations in the spaces without the renovations now deemed essential by landlords. Liu has also assured that if her budget falls short, she will fund additional work and explore phased renovations to expedite store openings.
Furthermore, Liu submitted letters from 11 companies willing to collaborate with her, including well-known brands like Conair, Northern Reflections, and Indeka Group. These suppliers have expressed readiness to provide merchandise promptly once agreements are finalized. The potential collaboration with Mimran Group Inc., known for its association with renowned brands like Club Monaco and Joe Fresh, could enhance the credibility of Liu’s transformation plans for the New Bay concept.
The Bay’s senior vice-president highlighted the landlords’ motivation to reclaim their leases for potential mixed-use developments, new retail concepts, or residential projects. Landlords like Oxford Properties and Cadillac Fairview have ambitious redevelopment plans for various malls, emphasizing the potential for increased revenue generation by terminating Hudson’s Bay’s leases and exploring diverse property development opportunities.
