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Hudson’s Bay Pushes to Preserve Ruby Liu Lease Deal After Court Hearing Adjourns

Hudson’s Bay says the lease assignment will generate significant recoveries for creditors to support its court-supervised wind-down.

Some senior lenders to Hudson's Bay Co. are seeking to terminate a controversial deal to sell off former Bay store leases to B.C. billionaire Weihong (Ruby) Liu.
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Ruby Liu is pictured in Vancouver, B.C, on Friday, July 4, 2025. Restore Capital LLC will ask Judge Peter Osborne to terminate a deal between the defunct retailer and Liu, who wants to buy up to 25 of its leases.
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Overview

  • An Ontario Superior Court hearing on July 15 was adjourned after Ruby Liu appeared without legal counsel or supporting materials, prompting Justice Peter Osborne to urge her to retain representation.
  • Restore Capital LLC filed a motion to terminate the agreement covering up to 25 former Hudson’s Bay leases and to appoint a super monitor or receiver to oversee the retailer’s liquidation.
  • Hudson’s Bay CFO Michael Culhane argued in opposing affidavits that ending the Ruby Liu deal would be premature and that it is expected to yield substantial funds for creditors.
  • Court monitor Alvarez & Marsal reported that Liu has not responded to repeated requests for business-plan details from landlords and that holding costs are eroding lender collateral by about $4.7 million per month.
  • A majority of landlords object to Liu’s bid citing inexperience and insufficient planning information, while Hudson’s Bay maintains no stronger alternative offers exist to maximize recoveries.