A shopper looks at the store closing signs outside Hudson’s Bay in Toronto. (Photo: THE CANADIAN PRESS/Nathan Denette)
Hudson’s Bay is making fresh moves to offload its store leases as it pushes through a messy legal and financial chapter. The company has just finalized new deals for six of its store locations, all while court hearings and landlord opposition continue to cloud a larger deal with billionaire Ruby Liu.
YM Inc. Secures Five Store Leases
Canadian fashion retailer YM Inc., known for brands like Urban Planet, Bluenotes, and Suzy Shier, has agreed to pay $5.03 million for five Hudson’s Bay store leases. The stores include high-traffic outlets such as:
- Vaughan Mills (Vaughan, ON)
- Tanger Outlet (Kanata, ON)
- Outlet Collection (Winnipeg, MB)
- CrossIron Mills (Rocky View, AB)
- Toronto Premium Outlets (Halton Hills, ON)
However, YM wasn’t able to lock down all the leases it wanted. It also tried to secure locations in Pickering, Edmonton, and Saskatoon for an additional $1 million, but those deals fell through after the landlords declined to approve the transfers.
Ivanhoe Cambridge Steps In
In a separate move, Ivanhoe Realties Inc., a division of real estate giant Ivanhoe Cambridge, snapped up the lease for the Metrotown location in Burnaby, B.C., for $20,000. Since Ivanhoe already owns the property, the lease change was relatively straightforward.
Court Approval Still Needed
Even though deals have been made, none of these leases can be transferred yet. The court must sign off before any official handovers. Hudson’s Bay is still under creditor protection, after shutting down all 80 of its stores and 16 Saks locations earlier this year.
So far, about 12 different bidders have shown interest in Hudson’s Bay's available properties, placing offers on a combined 39 locations.
Ruby Liu’s Lease Battle
Among the major buyers is Ruby Liu, a billionaire from British Columbia. Last month, she successfully bought leases at three malls she owns:
- Woodgrove Centre (Nanaimo)
- Mayfair Shopping Centre (Victoria)
- Tsawwassen Mills (Delta)
She paid $6 million for the three and got court approval. But Liu’s bigger plan — to acquire 25 more leases — is now facing strong pushback from landlords. They argue that Liu hasn’t presented a clear or practical business plan to take over the locations.
Hudson’s Bay Asks for More Time
Hudson’s Bay isn’t done yet. Court filings reveal the company wants more time to:
- Finalize the YM and Ivanhoe deals
- Get the Ruby Liu lease deal approved
- Hold an art auction
- Explore other ways to recover funds for its lenders
To make this happen, the company is asking the court to extend its creditor protection from July 31 to October 31, hoping the extra months will help it maximize value for the nearly $1 billion it owes to creditors.
