Major Landlords Urge Court to Block Ruby Liu’s Takeover of Former Hudson’s Bay Leases, Calling Plan ‘Unrealistic’

Several of Canada’s top real estate companies are pushing back against B.C. billionaire Ruby Liu’s plan to take over 25 former Hudson’s Bay leases, telling the Ontario Superior Court her proposal is “entirely unrealistic” and risks leaving prime retail space vacant.

In filings made Saturday, Cadillac Fairview, Oxford Properties, Ivanhoe Cambridge, KingSett Capital, Morguard Investments, and Primaris REIT asked the court to block Liu from becoming their tenant. They argue Liu lacks the experience, staffing, and financing to successfully operate large-scale department stores, despite owning three malls in B.C.

Cadillac Fairview executive Rory MacLeod said Liu’s business is “an empty shell” and likely to run out of money before opening its first store. Oxford’s Nadia Corrado alleged Liu’s public vision for her stores — which includes grocery aisles, entertainment venues, and fine dining — would breach lease terms that restrict the spaces to department store operations.

The contested leases, which come with favourable rents negotiated by Hudson’s Bay before it entered creditor protection in March, cover some of the country’s most sought-after retail locations. While Liu has already secured three leases at her own malls, most other landlords have resisted the transfer.

Landlords also question Liu’s pledge to open at least 20 stores within 180 days of acquiring the leases, invest $120 million in repairs, and spend $135 million on initial inventory. Cadillac Fairview estimates its properties alone will require over $43 million in repairs over the next decade — far more than Liu has budgeted.

Concerns also extend to staffing and supply chains. Liu’s plan calls for 1,800 employees across 28 stores — a figure landlords say is far too low — and her inventory assurances are based on letters of interest rather than firm supply agreements.

Ivanhoe Cambridge’s Ruby Paola warned Liu’s “untested and unknown” retail concept could fail, harming malls “for many, many years to come.”

Liu and Hudson’s Bay have until next Tuesday to respond. A judge is scheduled to hear the case at the end of the month.