Hudson’s Bay Lease Deal with Ruby Liu Faces Court Challenge from Frustrated Lenders

                                                   

Hudson’s Bay Company is facing mounting legal pressure as one of its key lenders, Restore Capital LLC, has filed a motion to terminate a controversial lease deal with B.C. billionaire Ruby Liu. The motion, submitted to the Ontario Superior Court, seeks to halt the retailer’s plan to transfer up to 25 store leases to Liu and calls for the appointment of a “super monitor” to oversee the liquidation of the company’s remaining assets.

Restore Capital alleges that Hudson’s Bay has mismanaged the lease transfer process, incurring over **$18 million in unnecessary expenses**, including rent, consultant fees, and signage removal. The lender claims these costs have eroded its collateral and jeopardized any chance of recovery.

While a smaller deal involving three leases at Liu’s own malls was approved earlier, the broader transaction has stalled amid landlord opposition. Major property owners like Cadillac Fairview and Oxford Properties have rejected Liu’s plans, citing a lack of a viable business strategy.

With the court-imposed July 15 deadline looming, Restore argues that Hudson’s Bay’s continued pursuit of the Liu deal is draining resources and delaying resolution. The motion proposes expanding the powers of Alvarez & Marsal, the current court-appointed monitor, or appointing Richter Consulting Inc. as a receiver to expedite the wind-down process.

As the legal battle intensifies, the future of Hudson’s Bay’s remaining assets—and Ruby Liu’s retail ambitions—hangs in the balance.