Hudson’s Bay Company (HBC) is returning its former department store properties to landlords, ending B.C. billionaire Ruby Liu’s high-profile legal fight to take over dozens of leases.
In an email to The Canadian Press, Franco Perugini, HBC’s senior vice-president of real estate and legal, said the retailer is disclaiming 25 leases that Liu had sought to acquire. The legal move effectively ends the agreements before their expiry, releasing HBC from further rent and maintenance obligations.
Unless landlords object, the leases will be terminated on November 27.
Liu’s spokesperson, Linda Qin, did not immediately respond to requests for comment.
HBC, once one of Canada’s oldest retailers, shuttered its remaining 80 Hudson’s Bay stores and 16 Saks locations this summer after seeking creditor protection and liquidating inventory. As part of its restructuring, the company had offered its store leases for sale.
Liu, who hoped to launch a new luxury retail chain under her own name, moved quickly to purchase up to 28 leases, securing court approval for three properties she already owned — Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills.
However, landlords including Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge strongly opposed her bid for the remaining 25 leases. They questioned Liu’s retail experience and financial capacity, despite her $69.1 million offer, arguing her business plan was insufficient.
While HBC initially backed Liu’s proposal — viewing it as a way to recover part of the $1.1 billion owed to creditors — a judge sided with the landlords last month, citing “significant concerns” over Liu’s ability to meet lease obligations.
HBC’s decision to disclaim the leases signals it will not appeal the ruling.
Oxford Properties spokesperson Josh Burleton said the move “brings some certainty to this lengthy and costly process,” adding that Oxford’s priority has been protecting assets tied to employee and pensioner funds.
Oxford is the real estate arm of the Ontario Municipal Employees Retirement System (OMERS), which manages pensions for more than 600,000 members across the province.
The disclaimer officially closes one of the most closely watched retail property disputes in Canada’s recent corporate history, marking the end of Ruby Liu’s bid to revive Hudson’s Bay locations under a new name.
