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More than two dozen Hudson’s Bay Company stores are slated to be acquired by Ruby Liu Commercial Investment Corp, the companies said last week.
As part of its restructuring under Canada’s equivalent of bankruptcy, the department store has entered into a definitive agreement to shift up to 28 leases in Ontario, Alberta and British Columbia to Ruby Liu Commercial Investment Corp, “for the purposes of launching a new modern department store concept in Canada.”
The investment entity is controlled by billionaire Ruby Liu, also known as Weihong Liu, who is also chairwoman of mall developer Central Walk. That company specializes in developing commercial real estate in Asia and Canada, and already runs Mayfair Shopping Centre in Victoria, and Tsawwassen Mills Outlet Shopping Mall and Woodgrove Centre in British Columbia. Those malls are known for their emphasis on experiences and events.
An affiliate of Ruby Liu Commercial Investment Corp, presumably Central Walk, “is an existing landlord at three of the Company’s leased locations in British Columbia, which are included in the Transaction,” according to a press release. The amount of the transaction, which is subject to court approval, was undisclosed. Central Walk and Liu didn’t immediately respond to a request for comment.
The iconic retailer, whose roots trace back to the 17th century fur trade, filed for creditor protection in March with plans to liquidate. Earlier this month, retailer Canadian Tire Corp. took over several of Hudson’s Bay’s leases and — in what could be a challenge for Liu — its intellectual property for more than $21 million. It’s unclear if Liu plans to use the Hudson’s Bay branding.
Mall developers Simon Property Group and Brookfield in the U.S. have also invested in distressed retailers, most notably J.C. Penney. That department store chain continues to struggle, swinging to a loss last year.