Latest news with #HudsonsBay
CTV News
a day ago
- Business
- CTV News
B.C. mall owner's push to buy 25 Hudson's Bay leases faces landlord opposition: docs
A Hudson Bay Company store in Toronto is shown on Monday, January 27, 2014. THE CANADIAN PRESS/Nathan Denette New court documents show that the landlords of former Hudson's Bay properties overwhelmingly oppose the department store's sale of leases to a B.C. entrepreneur. The documents filed by a court monitor appointed to help the Bay through creditor protection say landlords representing 23 leases in a group of 25 Liu purchased won't approve the plan. Court monitor Alvarez & Marsal says the landlords have also said they will oppose any future moves that would force them to accept the lease deal the Bay signed with Liu. As well as the group of leases the landlords oppose Liu also plans to buy three real estate contracts the Bay had at B.C. malls she owns. The Bay will ask a court to approve that deal Monday. In addition to the Liu deals, Alvarez & Marsal say an unnamed party is interested in up to eight leases in Ontario, Alberta, Saskatchewan and Manitoba. It says another lease transaction the Bay signed fell through after an unnamed company refused to correct errors in an agreement and then backed away from the purchase. This report by Tara Deschamps, The Canadian Press, was first published June 19, 2025.
Yahoo
a day ago
- Business
- Yahoo
B.C. mall owner's push to buy 25 Hudson's Bay leases faces landlord opposition: docs
TORONTO — New court documents show that the landlords of former Hudson's Bay properties overwhelmingly oppose the department store's sale of leases to a B.C. entrepreneur. The documents filed by a court monitor appointed to help the Bay through creditor protection say landlords representing 23 leases in a group of 25 Liu purchased won't approve the plan. Court monitor Alvarez & Marsal says the landlords have also said they will oppose any future moves that would force them to accept the lease deal the Bay signed with Liu. As well as the group of leases the landlords oppose Liu also plans to buy three real estate contracts the Bay had at B.C. malls she owns. The Bay will ask a court to approve that deal Monday. In addition to the Liu deals, Alvarez & Marsal say an unnamed party is interested in up to eight leases in Ontario, Alberta, Saskatchewan and Manitoba. It says another lease transaction the Bay signed fell through after an unnamed company refused to correct errors in an agreement and then backed away from the purchase. This report by The Canadian Press was first published June 19, 2025. Tara Deschamps, The Canadian Press
CTV News
2 days ago
- Business
- CTV News
B.C. mall owner says she wanted to run stores more than she wanted Bay trademarks
Ruby Liu may have lost out on owning Hudson's Bay's name and all its trademarks, but she's not bitter because she's got designs on her own retail empire. The B.C. real estate maven is seeking court approval for her $6 million purchase of three leases for former Bay locations in malls she owns in the province. 'I wanted to buy the trademarks, but I also like operating actual retail stores more than having the trademarks,' she told The Canadian Press in an interview in Mandarin. 'Owning the Bay's trademark for me is just like being a manufacturer.' Liu's remarks come after a court approved the sale of the Bay name and its trademarks to Canadian Tire Corp. Ltd. for $30 million at the start of the month. The decision gave the retailer, which also owns SportChek, Party City, Mark's and Pro Hockey Life, a vast trove of intellectual property belonging to Canada's oldest company. It includes rights to the Distinctly Home brand, its Hudson North apparel line and trademarks like 'Bay Days' and the Zellers catchphrase 'the lowest price is the law.' Liu, a Chinese entrepreneur who owns three B.C. malls, had made an offer for the trademarks in hopes of using them to revive the Bay. She faced competition from a dozen other people or companies bidding on the Bay's intellectual property, court documents have said. Other than Canadian Tire and Liu, only Toronto investment manager Urbana Corp. has publicly disclosed it was a bidder. 'When I competed with Canadian Tire, I had to pay more than $30 million and Canadian Tire is very rich,' Liu said of the bidding process, where she said she kept having to increase her offer price. Eventually, she realized she might have to spend $50 million to win the trademarks, so, she said, 'I gave up the bidding.' Hudson's Bay lawyers have said the retailer picked Canadian Tire because its bid was 'the highest and best offer resulting from a competitive process.' Financial advisers who helped on that deal said some of the offers received were indistinguishable, so they sought and obtained modifications to improve them where possible. Liu had better luck when she went up against 11 other parties vying for 39 leases belonging to the Bay and its sister Saks banners. The Bay chose her proposal to take over up to 28 in Alberta, B.C. and Ontario. Anyone who made an offer for leases had to deposit 10 per cent of their estimated purchase price. Court documents show Liu made a deposit of $9.4 million on top of the $6 million for the three leases in her own malls, which would equate to a purchase price of $100 million. The transaction still needs court and landlord approval to move forward. Liu met with landlords in early June. Some have sent letters to Hudson's Bay seeking more information on her plans and outlining 'concerns,' court documents show. The records don't specify what the concerns are but say the Bay is 'hopeful that all matters can be resolved consensually.' In the meantime, it will ask a court on Monday to allow Liu to buy three leases at B.C. malls her Central Walk company owns — Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre. Her plan is to use the spaces and any others she is able to secure to develop a modernized department store she'll name Ruby Liu and market with a scarlet jewel as its logo. Liu said it will sell products like clothing, jewelry and makeup but also have elements for entertainment, kids, seniors, fitness and cosplay — the practice of dressing up as fictional characters. The idea is not to 'just stick to the old ways.' 'I want to innovate,' she said. 'I want to combine the elements of eating, drinking, and having fun with my retail business.' It's unclear whether the leases she wants to take over allow for such activities or whether landlords would even permit them. If they agree to her plan, she'll first have to revamp the sites she is taking over. Many have broken escalators and are in need of repairs to indoor infrastructure as well as roofs and the outdoor facades. Liu estimates she will spend $30 million to get the spaces at the Mayfair Shopping Centre and Woodgrove Center in tip-top shape, but said it's a necessary expense to executive on her vision. 'I want to change,' she said. 'I don't want my three stores to repeat what the Bay was doing.' This report by Tara Deschamps and Nono Shen, The Canadian Press, was first published July 18, 2025.
Yahoo
2 days ago
- Business
- Yahoo
B.C. mall owner says she wanted to run stores more than she wanted Bay trademarks
Ruby Liu may have lost out on owning Hudson's Bay's name and all its trademarks, but she's not bitter because she's got designs on her own retail empire. The B.C. real estate maven is seeking court approval for her $6 million purchase of three leases for former Bay locations in malls she owns in the province. 'I wanted to buy the trademarks, but I also like operating actual retail stores more than having the trademarks,' she told The Canadian Press in an interview in Mandarin. 'Owning the Bay's trademark for me is just like being a manufacturer.' Liu's remarks come after a court approved the sale of the Bay name and its trademarks to Canadian Tire Corp. Ltd. for $30 million at the start of the month. The decision gave the retailer, which also owns SportChek, Party City, Mark's and Pro Hockey Life, a vast trove of intellectual property belonging to Canada's oldest company. It includes rights to the Distinctly Home brand, its Hudson North apparel line and trademarks like "Bay Days" and the Zellers catchphrase "the lowest price is the law." Liu, a Chinese entrepreneur who owns three B.C. malls, had made an offer for the trademarks in hopes of using them to revive the Bay. She faced competition from a dozen other people or companies bidding on the Bay's intellectual property, court documents have said. Other than Canadian Tire and Liu, only Toronto investment manager Urbana Corp. has publicly disclosed it was a bidder. 'When I competed with Canadian Tire, I had to pay more than $30 million and Canadian Tire is very rich," Liu said of the bidding process, where she said she kept having to increase her offer price. Eventually, she realized she might have to spend $50 million to win the trademarks, so, she said, "I gave up the bidding." Hudson's Bay lawyers have said the retailer picked Canadian Tire because its bid was "the highest and best offer resulting from a competitive process." Financial advisers who helped on that deal said some of the offers received were indistinguishable, so they sought and obtained modifications to improve them where possible. Liu had better luck when she went up against 11 other parties vying for 39 leases belonging to the Bay and its sister Saks banners. The Bay chose her proposal to take over up to 28 in Alberta, B.C. and Ontario. Anyone who made an offer for leases had to deposit 10 per cent of their estimated purchase price. Court documents show Liu made a deposit of $9.4 million on top of the $6 million for the three leases in her own malls, which would equate to a purchase price of $100 million. The transaction still needs court and landlord approval to move forward. Liu met with landlords in early June. Some have sent letters to Hudson's Bay seeking more information on her plans and outlining "concerns," court documents show. The records don't specify what the concerns are but say the Bay is "hopeful that all matters can be resolved consensually." In the meantime, it will ask a court on Monday to allow Liu to buy three leases at B.C. malls her Central Walk company owns — Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre. Her plan is to use the spaces and any others she is able to secure to develop a modernized department store she'll name Ruby Liu and market with a scarlet jewel as its logo. Liu said it will sell products like clothing, jewelry and makeup but also have elements for entertainment, kids, seniors, fitness and cosplay — the practice of dressing up as fictional characters. The idea is not to "just stick to the old ways." 'I want to innovate,' she said. 'I want to combine the elements of eating, drinking, and having fun with my retail business.' It's unclear whether the leases she wants to take over allow for such activities or whether landlords would even permit them. If they agree to her plan, she'll first have to revamp the sites she is taking over. Many have broken escalators and are in need of repairs to indoor infrastructure as well as roofs and the outdoor facades. Liu estimates she will spend $30 million to get the spaces at the Mayfair Shopping Centre and Woodgrove Center in tip-top shape, but said it's a necessary expense to executive on her vision. "I want to change," she said. "I don't want my three stores to repeat what the Bay was doing.' This report by The Canadian Press was first published July 18, 2025. Tara Deschamps and Nono Shen, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
3 days ago
- Business
- CTV News
Canada's retailers are in trouble and there's more to come: insolvency, restructuring experts
A shopper walks past an empty sales area at the flagship downtown Hudson's Bay store in Vancouver, on Monday, March 24, 2025. THE CANADIAN PRESS/Darryl Dyck The fall of Hudson's Bay and Saks Fifth Avenue Canada may give the impression that one of the hottest trends this year is the distressed look, but retail and insolvency experts say the company's demise is part of a now-annual pitter-patter they expect to continue. Since the COVID-19 pandemic, they've seen hundreds of retail businesses reach the brink every year. As a result, some restructured, others reduced their store count — and many closed for good. What they've observed mirrors federal government data showing insolvencies and bankruptcies in the retail sector have been rising over the past four years after a roughly 25-year decline. The latest data comes from April, when Canada recorded 56 insolvencies and 46 bankruptcies. A month earlier, the Bay filed for creditor protection, making it one of four retail companies that sought a reprieve in the first quarter of the year. 'The Hudson's Bay Company ... was kind of like a big flag for everyone and I think is setting the expectation that retailers are in trouble and there's more to come,' said Michael Basso, a partner in business restructuring and turnaround services for accounting firm BDO Canada. Experts, including Basso, say the trend is a reflection of many businesses that haven't been able to catch a break between the slow rebound from the health crisis, see-sawing consumer demand and a global tariff war. 'A lot of them have been just barely staying afloat since the pandemic ... so when the tariffs happened, they probably just couldn't withstand one more thing at that point,' said Dina Kovacevic, editor of Insolvency Insider, a Canadian newsletter detailing bankruptcy and creditor protection news. This year's onslaught has not just toppled Canada's oldest company, Hudson's Bay, but also left shopping districts without Montreal apparel business Frank and Oak and farm goods store Peavey Mart. Ricki's, Cleo and Bootlegger-owner Comark Holdings Inc., Vancouver clothing brand Oak + Fort and eyewear chain Hakim Optical got in on the action as well, filing for creditor protection and beginning restructurings. Several framed their troubles around the COVID crisis or pointed the finger at U.S. President Donald Trump's penchant for tariffs, but Kovacevic said 'the retail industry has been struggling for some time.' 'Tariffs may have been the final nail in the coffin but to put all or even most of the blame on tariffs wouldn't be fair,' she said. 'It's been a perfect storm of things beyond the retailers' control.' For many, the problems started long ago. When some shoppers moved online, many retailers misjudged the moment. They either didn't focus on e-commerce enough or leaned too far into it, cannibalizing their brick-and-mortar business. Others had a product mix that wasn't enticing customers away from competitors or pushing them to spend as their expenses rose. When the pandemic arrived, it magnified these issues and caused some companies to rethink their entire business models, only for new tariffs to emerge and take aim at their supply chains and pricing. The succession of troubles left companies taking on more and more debt to cover bills like rent, which in some cases, had become insurmountable. 'We in the insolvency community call it a reckoning of zombie companies,' said Kovacevic. Zombie companies are businesses so unable to generate enough revenue to operate the business, they rely on debt to stay alive. The number of Canadian zombie firms has been rising over the past few decades, with recent studies showing that the country's share could potentially be the highest in the world, researchers from Statistics Canada and the federal Department of Finance concluded in 2023. Basso attributes some of the increase to the loans and other financial support the federal government offered during the pandemic to companies that might not have been able to borrow that money. 'They had issues before the pandemic and would otherwise have gone down or been forced to restructure during the pandemic,' he said. 'The loans I think helped them have a chance to continue but are now saddling the balance sheets with debt ... they have no ability to pay off.' Such situations have driven many companies to their death. Others have looked for a way forward through the court system or businesses like Gordon Brothers, which are involved with appraisals, liquidation, fundraising and restructuring. At the start of the month, Gordon Brothers helped Canadian home goods and accessories retailer Linen Chest secure $35 million in credit to increase its 'liquidity and support future growth.' In December, it gave $120 million in financing to Toys 'R' Us Canada Ltd., which has been closing stores and building play centres at others. What all the companies Gordon Brothers has dealt with lately have in common is that the dynamics of their business — from supply chains to consumer demand — are 'changing much more quickly' than before the pandemic, said chief transaction officer Kyle Shonak. 'There's a lot of variables out there and unfortunately, there's no silver bullet for any of it,' he said. Some, like furniture businesses, have a glut of inventory from the pandemic, when people were feverishly revamping homes. As demand dropped, they didn't curtail production. Now, they need Gordon Brothers to help them offload pieces they have, ideally for the most money possible while setting up the business to avoid falling into the same trap again. At the same time, these companies and others are looking to Gordon Brothers to help them evaluate whether they have to raise prices or move production, storage or distribution of their products to cope with current tariffs or other crises that could be on their way. Gordon Brothers can help clients identify which of their products are less tariff prone or drum up financing to help those needing to switch manufacturers, but Shonak said, customers ultimately pay the price. 'The consumer at the end of the day is the one that pays for a lot of this stuff as it passes its way through the chain, but it affects everyone,' he said. This report by The Canadian Press was first published June 18, 2025. Tara Deschamps, The Canadian Press
