Canadian fashion powerhouse YM Inc. is set to expand its footprint after reaching a deal to acquire five former Saks OFF 5TH locations from the Hudson’s Bay Company (HBC). The agreements, disclosed in recent court filings, come as the storied retailer navigates a turbulent winding down under the Companies’ Creditors Arrangement Act (CCAA).
The deal, valued at $5.03 million, will see YM take over spaces in some of Canada’s most prominent outlet centres, subject to court approval and landlord consent. This transaction underscores YM’s aggressive growth strategy and highlights the growing appetite for prime retail real estate as HBC seeks to monetize its assets.
Where the New Stores Will Open
According to legal documents filed with the Ontario Superior Court of Justice, YM has secured the following leases:
- Vaughan Mills near Toronto – approximately 35,000 square feet
- Tanger Outlets Ottawa in Kanata – 28,357 square feet
- Outlet Collection Winnipeg – 32,191 square feet
- CrossIron Mills near Calgary – approximately 30,000 square feet
- Toronto Premium Outlets in Halton Hills – approximately 25,000 square feet
These locations are situated in some of the country’s busiest outlet centres, offering YM immediate access to high-traffic shopping destinations. The stores were formerly occupied by Saks OFF 5TH, which shuttered its Canadian operations last month. Saks OFF 5TH stores in Canada were licensed under the Hudson’s Bay Company.
YM’s ambitions extended beyond these five locations. The retailer had sought to acquire Saks OFF 5TH leases at Pickering Town Centre in Pickering and Skyview Power Centre in Edmonton, and a 175,000 square foot Hudson’s Bay lease at Midtown Plaza in Saskatoon for an additional $1 million. However, landlord approvals for those properties were not secured, a recurring obstacle in the ongoing restructuring process.
The inability to close these additional sites underscores a broader challenge facing bidders and HBC: the need for landlord consent in lease assignments. Many property owners remain cautious about incoming tenants, particularly amid uncertainty around the future of Canadian retail and the viability of new concepts.
A Broader Disposition Strategy
The YM transaction is part of a larger strategy by HBC to dispose of its real estate interests and generate liquidity for stakeholders. HBC has closed all 80 Hudson’s Bay department stores, 13 Saks OFF 5TH stores, and three Saks Fifth Avenue stores in Canada following its entry into creditor protection earlier this year.
The company owes nearly $1 billion to lenders and trade creditors, making asset sales a critical component of its restructuring plan. According to Alvarez & Marsal, the court-appointed Monitor, a total of 39 properties were offered for sale earlier this year, attracting a dozen bidders.
Among the most high-profile bidders is B.C. billionaire Ruby Liu, whose name has dominated headlines in recent weeks.
The Ruby Liu Saga: A Bidder Under Fire
Ruby Liu initially made waves by acquiring three former Hudson’s Bay leases at malls she owns — Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria, and Tsawwassen Mills in South Delta — for $6 million. Those transfers were approved by the court last month, returning the spaces to Liu-controlled properties.
However, her ambitions did not stop there. HBC selected Liu as the preferred bidder for 25 additional leases across Canada, positioning her to launch a new department store concept bearing her name. Liu has described her vision as a family-oriented shopping destination blending retail, dining, and entertainment.
Despite these aspirations, landlords have fiercely opposed the proposed transaction. Court filings reveal concerns that Liu has not yet submitted a credible or detailed business plan. The situation escalated during a recent hearing when Liu appeared without legal counsel or supporting documentation, prompting Justice Peter Osborne to adjourn proceedings.
“I not only urge but recommend in the strongest terms that you retain legal representation,” Justice Osborne stated, rescheduling the hearing for August 28. Until then, the fate of the 25 leases remains uncertain, creating heightened anxiety among creditors eager for resolution.
Mounting Costs and Tight Timelines
Delays in approving major lease transactions are proving costly. The Monitor estimates that maintaining HBC’s dark stores costs at least $4.7 million monthly in rent, property taxes, utilities, and related expenses. These carrying costs erode potential recoveries for creditors with every passing day.
In its latest motion record, HBC requested an extension of creditor protection from July 31 to October 31, citing the need for additional time to finalize the YM and IC transactions, secure approval of the Liu deal, and auction valuable corporate art holdings.
“The requested stay extension is necessary to preserve value for stakeholders and avoid a disorderly liquidation,” HBC’s counsel at Stikeman Elliott LLP argued in court filings.
Other Lease Sales Underway
While YM’s deal and Liu’s proposal dominate headlines, other transactions have also emerged. Ivanhoe Realties Inc., an affiliate of major landlord Ivanhoe Cambridge, has agreed to pay $20,000 for the lease of a 132,000-square-foot former Hudson’s Bay store at Metropolis at Metrotown in Burnaby. Given Ivanhoe Cambridge’s ownership of Metrotown, the deal effectively returns the property to its landlord.
This nominal purchase price highlights a key reality: in many cases, landlords prefer to regain control of their spaces rather than allow uncertain operators to take over, particularly when anchor tenant stability influences overall mall performance.
YM’s expansion signals confidence in the outlet and value-driven retail segment, even as department store operators struggle to adapt to shifting consumer behaviours. By acquiring these former Saks OFF 5TH sites, YM gains immediate access to prime outlet locations, a format aligned with its portfolio of accessible fashion brands such as Urban Planet, Bluenotes, West49, and Suzy Shier.
The question is, what does YM plan to do with the locations it has acquired? It would also be interesting to know what it proposed to do with the former Hudson’s Bay at Midtown Plaza in Saskatoon, which is a far larger format than any of the other stores?
I’m curious about that one too. I’m trying to imagine a YM super-megastore, that would be interesting.
my guess would be to open giant “outlet” stores for their brands, and dump excess inventory of their fast(ish) fashion
I am wondering if all YM Inc banners use a single POS system like all Hudson’s Bay Company banners did before all three HBC banners closed over the past decade and a half. If you a multi-banner clearance outlet makes sense.
Yes, we do.
urban behaviour = shein = no thanks
Looking at Vaughan’s store lineup, YM is already well represented there. Are they maybe bringing their US brands: Rue 21 & Charlotte Russe north of the border?
Ugh! Just what we need. Another clothing store. Suited best for millennials and Gen Zers. Something different and/or suited to older than those folks would be nice!
The HBC “tragedy” has zero silver lining from the collapse of Canada’s last truly national department store to the options for back filling the space. This is NOT a symptom of online shopping/malls/department stores in decline but of lack of investment, poor direction and greed. Hudson’s Bay was trending well until NRDC expanded into Europe and was spread too thin.
I’m not familiar with all the properties listed above but I would say it’s safe to say Canadians have enough YM branded stores (which in my opinion are very underwhelming in both merchandise quality and presentation). Would be great to see more Zara’s, Primarks, Simon’s Etc. as backfill (may not be likely but would be ideal).