Hudson’s Bay sells six store leases to YM Inc. and Ivanhoe Realties, seeking court approval as part of creditor protection restructuring.
Major Lease Sales Announced During Restructuring Process
Hudson’s Bay Company has reached agreements to sell the leases of six store locations across Canada, marking a significant step in its ongoing efforts to restructure under creditor protection. The deals, revealed through recent court filings, form part of the retailer’s broader plan to recoup funds for lenders and hundreds of creditors amid nearly $1 billion in outstanding debts.
YM Inc. Acquires Five Leases for $5 Million
Toronto-based fashion retailer YM Inc., known for brands like Urban Planet, Suzy Shier, and Bluenotes, has agreed to purchase five Hudson’s Bay leases for $5.03 million. The affected locations include Vaughan Mills in Vaughan, Tanger Outlets in Kanata, Outlet Collection in Winnipeg, CrossIron Mills near Calgary, and Toronto Premium Outlets in Halton Hills.
YM also attempted to secure leases in Pickering, Saskatoon, and Edmonton for an additional $1 million, but landlord approvals for these sites were not obtained.
Ivanhoe Buys Burnaby Lease for $20,000
In a separate transaction, Ivanhoe Realties Inc., a subsidiary of Ivanhoe Cambridge, has committed $20,000 for a lease at Burnaby’s Metrotown mall. Since Ivanhoe Cambridge owns the property, the transaction is expected to face fewer legal hurdles, pending court approval.
Deals Await Court Approval and Landlord Consent
All lease transfers remain subject to court approval, as Hudson’s Bay continues navigating legal complexities in its restructuring. The retailer filed for creditor protection earlier this year, closing all 80 of its department stores along with 16 Saks locations. Since then, over a dozen bidders have expressed interest in its remaining real estate assets.
Billionaire Liu Eyes Larger Share of Assets
B.C. billionaire Ruby Liu has already secured leases at three malls she owns — Woodgrove Centre in Nanaimo, Mayfair in Victoria, and Tsawwassen Mills in Delta — for $6 million. She is also the preferred bidder for 25 additional leases. However, several landlords have raised objections, citing a lack of a viable business plan from Liu.
Creditor Protection Extension Sought to Complete Sales
To finalize ongoing transactions and conduct a planned art auction, Hudson’s Bay is requesting an extension of its creditor protection from July 31 to October 31. The request aims to allow additional time to close lease deals, resolve landlord disputes, and maximize returns for stakeholders.
Background: A Retail Giant in Decline
Hudson’s Bay, one of Canada’s most historic retailers, has faced increasing pressure from changing consumer habits and online competition. Its current restructuring efforts are being closely watched as a bellwether for the future of brick-and-mortar retail in the country.
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