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Restore Capital Asks Court to Stop Ruby Liu Lease Purchase and Boost Monitor’s Authority

Depleted first-lien security has led Restore Capital to seek expanded monitor authority or appointment of Richter Consulting as receiver under the CCAA.

Hudson’s Bay signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj
Billionaire Ruby Liu listens during an interview at a former Hudson's Bay-owned Saks Off 5th department store after a "handover ceremony" where she received the keys to the space at Tsawwassen Mills shopping mall that she owns, in Tsawwassen, B.C., on Thursday, June 26, 2025. Liu was granted court approval this week to take over leases for three Hudson's Bay properties in malls she owns. THE CANADIAN PRESS/Darryl Dyck
A motion filed Tuesday by Restore Capital LLC asks a court to stop the defunct retailer from selling up to 25 of its leases to mall owner Ruby Liu and appoint a 'super monitor' to more prudently liquidate the remainder of its assets.

Overview

  • Restore Capital filed a motion on July 8 in Ontario Superior Court to halt the sale of up to 25 Hudson’s Bay leases to investor Ruby Liu.
  • It contends landlord refusals and escalating rent and professional fees have eroded the lender’s collateral without securing required approvals.
  • Hudson’s Bay entered CCAA protection in March with Alvarez & Marsal as monitor and first-lien lenders extending a $151 million term loan in December.
  • Restore Capital is urging the court to grant broader powers to the current monitor or to appoint Richter Consulting Inc. as receiver to expedite liquidation.
  • Ruby Liu completed a $6 million purchase of three B.C. leases last month but has faced widespread landlord opposition for the remaining Alberta, B.C. and Ontario sites.