B.C. Billionaire Ruby Liu Loses Hudson’s Bay Court Battle
B.C. billionaire Ruby Liu has lost her high-profile legal battle to take over dozens of former Hudson’s Bay properties after an Ontario Superior Court judge ruled landlords are not required to accept her as a tenant.
The decision, delivered by Justice Peter Osborne on Friday, ends months of courtroom arguments surrounding Liu’s bid to acquire 25 of the collapsed retailer’s leases for $69.1 million.
Osborne said he had “significant concerns” about Liu’s ability to meet the terms of the leases, questioning her preparedness and financial capacity to revive the spaces. Major landlords including Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge opposed her purchase, saying she lacked a solid business plan and an experienced retail team.
Liu, who made her fortune in Chinese real estate before immigrating to Canada, had hoped to launch a new department store chain under her own name using the former Hudson’s Bay locations. She argued landlords were biased against her as an “outsider.”
The landlords countered that her proposal was unrealistic, noting her $400 million renovation budget and rapid 180-day reopening plan were not feasible, especially given her malls had accumulated $19 million in debt over two years.
The court battle stemmed from Hudson’s Bay’s collapse earlier this year. The once-iconic retailer, burdened by $1.1 billion in debt, entered creditor protection in March, later liquidating its 80 stores and auctioning off its leases and assets.
While Liu successfully acquired three B.C. mall locations — Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills — her attempt to expand further became one of the most contentious disputes in the company’s winddown.
Under section 11.3 of the Companies’ Creditors Arrangement Act, the court had to decide whether Liu was a suitable assignee despite landlord objections. Though the court-appointed monitor Alvarez & Marsal believed Liu could technically meet her obligations, it warned of a “very real risk” of failure due to her inexperience and the project’s “monumental” scale.
Hudson’s Bay and its lender Pathlight Capital had supported Liu’s offer, claiming landlords were more interested in reclaiming control to re-lease the spaces at higher rates or redevelop them.
Neither Liu nor HBC has announced plans to appeal the ruling.
