A British Columbia billionaire’s attempt to revive the Canadian department store model has come to an abrupt end. Ruby (Weihong) Liu, chairwoman of Central Walk Group, has lost her high-profile legal bid to acquire 25 former Hudson’s Bay leases across Canada. The Ontario Superior Court’s ruling, issued by Justice Peter Osborne, effectively blocks Liu’s plan to launch a new national department store chain under her own name.
The decision follows months of court hearings, public appeals, and heated exchanges between Liu and some of Canada’s largest commercial landlords, including Cadillac Fairview, Oxford Properties, and La Caisse (formerly Ivanhoé Cambridge). The landlords had fought vigorously to prevent Liu’s company from taking over the prime retail leases, arguing that her plan was unworkable and financially unsound.
Judge Finds Plan “Fell Short of a Reasonable Standard”
In his written decision, Justice Osborne concluded that Liu’s business plan “fell well short of a reasonable standard” required to demonstrate the ability to meet lease obligations. He cited significant concerns about her understanding of the financial and operational requirements necessary to run a large-scale department store chain.
“This raises reasonable concerns as to her involvement in and understanding of the Business Plan,” Osborne wrote, referencing inconsistencies in Liu’s testimony and the confusion she displayed during cross-examination over key financial commitments and corporate structure. The court monitor also noted that Liu appeared unfamiliar with details of her companies’ audited financial statements and the equity commitments underpinning the proposed transaction.
Justice Osborne emphasized that these gaps undermined confidence in Liu’s ability to deliver on her own plan. He added that the company she established to acquire the leases “is not an established business at all, let alone one established in the sphere in which it will be required to perform the lease obligations, the operator of a major national department store chain with all that entails.”
The judge also underscored that the proposal lacked credible evidence of experienced retail leadership or sufficient capital reserves to ensure viability beyond the initial investment period. The court monitor echoed this assessment, warning that the venture risked becoming insolvent in the near term if the leases were transferred.
The Hudson’s Bay Collapse and Lease Auction
Founded in 1670, Hudson’s Bay entered creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in March 2025, burdened by $1.1 billion in debt and declining sales. The liquidation of its assets, including dozens of long-term store leases, was intended to repay senior lenders and recover as much value as possible for creditors.
Liu’s $69.1 million bid, first announced in May, was the highest offer received for 28 former Hudson’s Bay locations. The leases were considered valuable not only for their size but also for their historic anchor-tenant terms, which included below-market rents and renewal options extending decades into the future.
Although Liu’s proposal was initially approved for her three British Columbia sites, including Tsawwassen Mills, Mayfair Shopping Centre in Victoria, and Woodgrove Centre in Nanaimo, the remainder of her acquisition faced immediate opposition. Major landlords argued that Liu lacked the operational experience and financial capacity to revive a national retail chain.
A Bold Vision Meets Fierce Resistance
Liu’s vision was undeniably ambitious. She aimed to transform the empty department stores into vibrant community destinations combining fashion, beauty, lifestyle, and entertainment. Her proposed Ruby Liu stores would have included cafés, potentially children’s play areas, and cultural spaces, merging retail with social and experiential elements.
“We will create spaces full of life, where people reconnect through experiences, not just shopping,” Liu said earlier this year in a public statement. She also promised to rehire former Hudson’s Bay employees, pledging to invest $475 million in the new business, including $120 million for store renovations and more than 1,200 new jobs.
But while her promises captured public attention, they failed to convince landlords and creditors. The court-appointed monitor and several legal teams argued that Liu’s business plan underestimated costs and lacked credible financial backing. They also criticized her unconventional tactics, including the use of a Change.org petition to rally support and her direct email communications with Justice Osborne, which were deemed “inappropriate” by the Ontario Superior Court’s chief justice.
Landlords Raise Red Flags
Throughout the hearings, landlords’ lawyers argued that Liu’s plan was “doomed to fail.” They said her renovation budgets were unrealistic, her management team lacked retail experience, and her financing was unclear. They also questioned her ability to stock stores with sufficient inventory or attract credible brand partners in time to meet her proposed opening schedule.
Landlords maintained that forcing them to accept Liu as a tenant under the CCAA’s lease-assignment provisions would risk long-term harm to their shopping centres. Several argued that the presence of an untested retail chain in their anchor spaces could diminish property value and destabilize existing tenant relationships.
Ultimately, Justice Osborne sided with the landlords, concluding that Liu’s company failed to demonstrate it could “perform the obligations” of such extensive leases or deliver on its operational commitments.
A Divisive Figure in Canadian Retail
Liu’s rise in the Canadian retail and real estate landscape has been dramatic. A billionaire property developer from China, she built her fortune through large-scale mixed-use projects before relocating to Canada. Through her Central Walk Group, she acquired major shopping centres in British Columbia and Alberta, including Mayfair, Woodgrove, and Tsawwassen Mills, as well as a golf resort on Vancouver Island.
Her sudden emergence as a would-be retail operator surprised many in the industry. While some observers saw her as a bold new entrant capable of revitalizing empty retail spaces, others viewed her approach as unorthodox and poorly prepared.
Supporters, including some former Hudson’s Bay employees, expressed optimism that her venture could have saved jobs and preserved heritage store spaces. Critics, however, pointed to her lack of retail experience and unconventional courtroom behaviour as reasons for concern.
Controversy Inside and Outside the Courtroom
Liu’s campaign to acquire the leases became as much a public spectacle as a legal proceeding. On Chinese social media, she shared updates about her court appearances and openly criticized the landlords’ lawyers, accusing them of bias and corruption.
Her unfiltered communications raised questions about her understanding of the Canadian legal process. At one point, she directly emailed the presiding judge, calling him “a person of justice and strength” and asking him to “please give me a chance.” Justice Osborne later noted these actions in his ruling and emphasized that such correspondence was improper.
The monitor overseeing the CCAA proceedings also voiced concerns about Liu’s professionalism, stating that her team appeared disorganized and unprepared during portions of the cross-examination. The monitor’s recommendation to reject her offer carried significant weight in the final judgment.
Aftermath: What Happens to the Leases?
It remains unclear what will happen to the 25 leases at the centre of the dispute. Some may revert to the control of landlords, while others could be reopened for bids from previous participants in the court-supervised auction.
Lawyer Maria Konyukhova, representing Hudson’s Bay, had argued that Liu’s proposal represented the last viable path to recover value from the leases. The deal, if approved, would have generated approximately $50 million for senior creditors. With its rejection, those creditors may face deeper losses, while landlords regain full control of their prime retail assets.
Despite the controversy, the outcome may accelerate redevelopment plans for several of the former Hudson’s Bay spaces. Many big boxes are expected to undergo major repositioning, with anchor spaces likely to be subdivided for multiple tenants or repurposed for mixed-use development.
The End of an Era for the Canadian Department Store Model
The Hudson’s Bay insolvency and the collapse of the Ruby Liu bid together signal a broader transformation in Canadian retail. Department stores once served as the backbone of shopping centres, drawing steady customer traffic that supported smaller tenants. However, the economic realities of 2025 have rendered the traditional anchor model increasingly unsustainable.
Leases that were once assets are now viewed as liabilities by many landlords, given their large footprints and expensive upkeep. The lack of bidders for 62 other Hudson’s Bay locations underscores this structural challenge.
Liu’s attempt to revive the department store concept, albeit with an experiential twist, was among the few serious efforts to reimagine these spaces at scale. While her defeat halts the vision of a nationwide Ruby Liu chain, her approved properties in British Columbia remain a testing ground for what could become a smaller, hybrid retail model emphasizing community engagement, events, and entertainment alongside traditional retail.
Broader Implications for Retail Real Estate
For Canada’s retail real estate sector, the case has become a touchpoint in the debate over how to adapt large-format spaces in a post-department-store world. The legal clash between landlords and an ambitious new entrant reflects tensions between innovation and institutional caution.
Cadillac Fairview, Oxford Properties, and La Caisse have collectively invested billions in revitalizing their shopping centres, introducing luxury tenants, mixed-use components, and entertainment anchors. Their opposition to Liu’s plan underscores the priority they place on maintaining brand alignment, design cohesion, and long-term asset value.
For emerging developers and retailers, the outcome may serve as a cautionary tale: bold vision alone is not enough to navigate the complex ecosystem of Canada’s retail property industry. Financial credibility, operational experience, and stakeholder trust remain indispensable.
A Vision Unfulfilled, but Not Forgotten
Although Ruby Liu’s national department store dream has been curtailed, her ambition leaves a lasting mark on Canadian retail discourse. Few figures have generated as much discussion about the future of anchor retail or the role of independent capital in reshaping Canada’s shopping landscape.
Whether Liu will proceed with her three approved stores in British Columbia remains to be seen. Industry observers will be watching closely to determine whether those locations evolve into functioning retail destinations or remain empty testaments to a vision that challenged convention but ultimately fell short in execution.
