With the curtain now closed on all Hudson’s Bay Company stores — including the Hudson's Bay, Saks Fifth Avenue, and Saks OFF 5TH brands — the spotlight turns to what’s left: a portfolio of coveted leases and the question of who will claim them.
After previously announcing her intentions to buy up a set of the leases, Ruby Liu, the BC-based Chinese billionaire and Chairwoman of Central Walk, is now set to acquire three of the leases in British Columbia, as well as up to 25 additional leases at a later date, according to new court documents.
The three leases pertain to:
- Tsawwassen Mills at 5000 Canoe Pass Way in Delta;
- Mayfair Shopping Centre at 3147 Douglas Street in Victoria; and
- Woodgrove Centre at 6631 Island Highway N in Nanaimo.
The Tsawwassen Mills location was formerly occupied by a Saks OFF 5TH, while the other two were occupied by Hudson's Bay stores, and Ruby Liu — also known as Weihong Liu — is poised to acquire the three leases for $2,000,000 each, for a grand total of $6,000,000.
All three malls are owned by Central Walk and the three leases will be assigned by Hudson's Bay Company ULC to Ruby Liu Commercial Investment Corp. The landlords, corporate entities affiliated with Central Walk, are in support of the transaction, which is, in effect, Liu buying the leases in her personal capacity rather than in her Central Walk capacity. Liu has publicly announced her intentions to start a new department store brand.
After Hudson's Bay filed for and was granted creditor protection under the Companies' Creditors Arrangement Act (CCAA) on March 7, the Ontario Superior Court approved the two-phased sales process for HBC's assets on March 21.
Following the first phase, 18 parties submitted bids pertaining to 65 individual leases (with overlapping interest in certain locations). That was then whittled down to 12 parties for 39 individual leases. At the end of the process, Hudson's Bay and the court-appointed Monitor entered into an agreement with Central Walk pertaining to the assignment of "up to" 25 leases in addition to the aforementioned three.
The Monitor is now seeking approval for the three leases to Ruby Liu, which they said "represents the highest and best offers received within the marketing process for the CW Leases." If approved by the court during the hearing scheduled for June 23, the transactions would have an outside closing date of July 30.
"If approved, the Transactions will also result in a reduction of Landlord claims against the estate of the Company that would otherwise arise from the disclaimer of the CW Leases," the Monitor notes.
Court approval for the other 25 is not being requested at this time, as the parties remain in discussions with the various landlords in order to obtain their consent. According to court documents, Central Walk outlined its business plan for each of the remaining locations in letters to the various landlords on June 6. Some of those landlords have responded with information requests or concerns and discussions remain ongoing.
The remaining 25 leases are for locations in British Columbia, Alberta, and Ontario, as per an announcement made in late-May by Central Walk. The company does not currently own any properties outside of British Columbia, according to its website.
"Under the leadership of Ms. Ruby Liu, Chairwoman of Central Walk, the store locations will be transformed into modern department stores, bridging the gap between generations, providing immersive shopping experiences, and becoming a destination where all age groups thrive together," the company said.
