The 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.
Ontario Superior Court Judge Peter Osborne granted Ruby Liu permission to take over leases for three Hudson’s Bay properties in malls she owns. She will pay $6 million for the set of leases at Tsawwassen Mills in Vancouver, Mayfair Shopping Centre in Greater Victoria and Woodgrove Centre in Nanaimo, B.C.
“She is contributing millions of dollars of real value to the Companies’ Creditors Arrangement Act process,” said David Ward, a lawyer representing Liu. “She is betting on herself.”
As he spoke, Liu and an entourage of her staff looked on from the gallery. Earlier that morning, she arrived clad in a stylish black blazer and high heel boots, carrying a Louis Vuitton purse. She posed for photos beside the court coat of arms and told media she was planning to move to Toronto.
Hudson’s Bay closes its doors after 355 years
The sale of some Hudson’s Bay leases comes after the storied department store filed for creditor protection in March, a few months shy of its 355th birthday. In the months after, it looked for a buyer who could keep some semblance of the retailer alive, but the search was fruitless.
By June 1, all 80 Bays and 16 stores run under the Saks brands closed, putting their leases up for grabs. A dozen bidders made offers on a collective 39 properties.
Liu, who made her money in China’s real estate market, wound up winning the leases at three malls she runs because her bid had a superior value and terms, the Bay has said.
Liu wants to use the properties to open a chain of modernized department stores she will name after herself. She has told The Canadian Press they will sell makeup, jewelry and apparel, but will also have play spaces for children, dining areas and entertainment space.
She expects to spend more than $30 million to revamp the spaces at her malls to accommodate her Ruby Liu stores.
And that’s just the beginning. The Bay has reached a deal with her for 25 more leases belonging to it and its sister Saks companies.
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.
“That is not really a business plan, that is a full-circle investment,” Liu’s lawyer Ward said in recommending the court accept the three-lease deal.
The remaining 25 leases are in Alberta, B.C. and Ontario properties she doesn’t own. The Bay has yet to seek court approval for the arrangement, but landlords for the spaces are overwhelmingly opposed to her moving in.
Court documents filed last week show landlords representing 23 leases in a group of 25 Liu wants to purchase won’t approve her plan.
“We actually think it is 25 of 25 that have objected,” David Bish, a lawyer for landlord Cadillac Fairview, told the judge in court on Monday.
He said his client and others have been provided with no copies of Liu’s bid and little information about her plan.
“The process has been very troubled,” Bish said.
“At some point, we may discuss, if there is a forced assignment, how troubled it has been.”
Lawyers for Oxford Properties and Primaris echoed his comments.
Since it became clear that Liu’s 25-lease transaction was facing opposition, she and her staff have been on a charm offensive.
They launched a petition asking the public to support their goal. It had about 330 signatures as of Monday morning.
They also published a public letter from Liu, who said her quest to own the Bay’s leases is about reimagining retail and finding a way to give back to a country that gave her a new life.
Liu admitted her task “won’t be easy.” She said some, including her own family, have questioned her and whether she will spend her whole fortune on the venture.
“To me, this isn’t a gamble. It’s not just about money or profit,” she wrote. “It’s about building something meaningful — a space full of life, where people can reconnect in the real world.”
Liu had bid on owning the Bay’s name and trademarks but says she backed down after realizing she would have to continue to increase her offer to compete with Canadian Tire, which ultimately won the right to buy the intellectual property for $30 million.
On Friday, Osborne approved a request to remove any references to Hudson’s Bay and HBC from the name of the department store company.
The name change is standard to avoid confusion in cases where someone has bought the rights to a collapsing company’s name.
