The Hudson’s Bay Company is pressing forward with plans to sell 25 store leases to B.C. billionaire Weihong (Ruby) Liu, even as new court documents reveal the retailer once considered terminating the deal over what it described as Central Walk’s failure to meet key obligations.
The motion, filed late Tuesday, asks Ontario Superior Court to approve the transfer of leases despite mounting resistance from some of Canada’s most prominent landlords and Hudson’s Bay lenders. The transaction would allow Central Walk, Liu’s Nanaimo-based real estate investment firm, to assume control of a portfolio of former Hudson’s Bay spaces across Ontario, British Columbia and Alberta for just over $69 million, according to filings.
Hudson’s Bay argues the lease transfer will help repay creditors, create jobs and prevent the costly vacancy of major mall spaces, which it warns could lead to “the visual and economic blight of a dark store for a significantly prolonged period.”
A High-Stakes Deal for a Fledgling Retail Venture
The proposed lease package covers 15 Ontario locations, including CF Sherway Gardens, CF Fairview Mall and CF Markville in the Greater Toronto Area, as well as Hillcrest Shopping Centre in Richmond Hill, Upper Canada Mall in Newmarket, Bramalea City Centre in Brampton, and Oshawa Centre in Durham Region. Additional Ontario properties include Mapleview Centre in Burlington, Lime Ridge Centre in Hamilton, Fairview Park Mall in Kitchener and Conestoga Mall in Waterloo. The portfolio also includes CF Masonville Place in London, along with two Ottawa sites: Bayshore Centre and St. Laurent Centre.
In British Columbia, Liu’s company has bid for CF Richmond Centre, Guildford Town Centre, Coquitlam Centre, Willowbrook Centre in Langley, and Orchard Park in Kelowna (in addition to Bay stores in Liu-owned Mayfair Centre in Victoria and Woodgrove Centre in Nanaimo). Alberta locations include West Edmonton Mall, Southgate Centre, CF Chinook Centre, CF Market Mall and SouthCentre Mall in Calgary.
If approved, the transaction would mark one of the most ambitious retail ventures in Canada ever, introducing a new department store banner, Ruby Liu, to the national landscape. Liu, whose net worth well exceeds $1 billion, has pledged $375 million in equity capital to launch the chain, including $120 million for renovations and repairs such as HVAC systems, elevators and escalators, and $135 million for initial inventory.
Court filings indicate Liu’s plan is to open the stores in stages, starting next year, with all operations running by 2027. Financial projections estimate annual sales of more than $420 million and earnings before interest, taxes, depreciation and amortization of $6.5 million by that time.
Landlord Opposition and Early Missteps
Despite its potential economic impact, the plan faces stiff opposition from landlords including Cadillac Fairview, Oxford Properties and Primaris REIT. Their concerns centre on Liu’s lack of experience operating a retail chain and on what some described as vague and unrealistic early plans.
Correspondence filed in court shows that in early meetings, Central Walk presented a roadmap suggesting up to 20 stores could open within 180 days of signing leases — a timeline landlords called “predicated upon hope, optimism and not on experience.” Cadillac Fairview concluded Liu appeared to be “making this up as she goes,” according to documents.
The skepticism deepened after reports that Hudson’s Bay, in a July 5 letter, accused Liu of breaching the agreement by failing to “take the most basic and necessary steps to advance its bid.” The retailer even threatened to terminate the deal.
Revised Business Plan and New Advisors
Hudson’s Bay now says Central Walk has taken significant steps to address those concerns. The purchase price for the leases was reduced by $3 million, freeing funds for Liu to retain new legal and operational advisors.
Toronto-based J2 Retail Management has been engaged to assist with store setup and vendor negotiations, and several former Hudson’s Bay executives have joined the project, bringing expertise in supply chain, construction and import operations.
The latest filings show interest from more than 60 product vendors and confirm Liu’s commitment to hiring approximately 1,800 employees, including former Hudson’s Bay staff. J2 Retail Management also has access to many of the brands formerly carried in Hudson’s Bay stores.
Liu emphasized in her affidavit that her experience operating three shopping malls has given her “a profound understanding of the retail landscape in Canada.” Before immigrating in 2014, she built and sold a mall in Shenzhen for $1.32 billion, court documents state.
Stakes for Hudson’s Bay and Canadian Retail
For Hudson’s Bay, the lease sale represents a critical step in its restructuring under creditor protection, which the company sought on March 7 amid $1.1 billion in debt and mounting losses. The retailer shuttered all stores in early June after failing to secure a rescue plan, leaving some of the country’s largest shopping centres with vacant anchor spaces.
If successful, the deal could generate $50 million toward Hudson’s Bay’s obligations and offer landlords a path to restoring foot traffic. Failure, the retailer warns, would mean returning the leases and prolonging the vacancies.
Alongside the Central Walk motion, Hudson’s Bay is seeking approval for two smaller deals: five Saks OFF 5TH leases to YM Inc. for $5.03 million and one Hudsons’ Bay store lease at Metropolis at Metrotown to Ivanhoe Realties Inc. for $20,000. A hearing on the Ruby Liu transaction is scheduled for August 28.
