- Ruby Liu, a Chinese-Canadian real estate investor, has offered C$450M to buy the leases of 25 former Hudson’s Bay locations to launch a new department store chain.
- Her plan has faced strong opposition from landlords, including major Canadian pension funds, who argue her business model is vague, unrealistic, and not credible.
- The court-appointed monitor recommended rejecting Liu’s lease bid, but the judge will make the final decision in a high-stakes case that highlights tensions over the future of mall retail in Canada.
The Backstory
Ruby Liu is a relatively unknown figure in Canadian business circles until this year. She is now aiming to resurrect 25 shuttered Hudson’s Bay Co. stores, as reported by Bloomberg. Her bold plan is to create a new national retail chain under her own name. She’s pledged C$450M, including C$69M to Hudson’s Bay’s creditors and C$375M to reopen the stores, plus an additional C$6M for three stores located in malls she already owns.
Liu made her fortune in China developing commercial real estate, including the Yijing Central Walk mall in Shenzhen, which she sold before moving to Canada. In British Columbia, she owns multiple properties, including three malls and a golf course.
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The Controversy
Liu’s prospective landlords include Ontario Teachers’ Pension Plan, OMERS, and Caisse de Depot et Placement du Quebec. These major investors have mounted fierce resistance to her plan.
They allege that Liu:
- Refused to share her business plan during early meetings.
- Provided vague or inconsistent responses about inventory and operations.
- Set unrealistic targets for reopening timelines and projected sales.
- Proposed subleasing spaces and adding features like restaurants and playgrounds that could violate existing lease terms.
Court documents detail tense meetings, with one pension executive testifying Liu tried to block the door as they walked out. Her unorthodox approach and lack of retail experience raised doubts about her ability to operate large-format department stores.
What’s Really At Stake
The landlords argue that Liu’s plan is not only flawed but risks hurting the malls if it fails. However, Liu claims the opposition is really about development opportunity. If her lease bid fails, the properties return to the landlords. That would give them free rein to redevelop in a hot housing market.
According to court filings, at least four of the mall properties involved already have redevelopment plans. Some landlords have also invested millions to relax lease restrictions in preparation.
The Latest
A court-appointed monitor recently recommended rejecting Liu’s bid, citing her inexperience and lack of signed agreements with key staff or suppliers. Liu responded by saying she’s in the process of hiring former Hudson’s Bay employees and a retail consultant, and that she’s ready to invest more capital if needed.
She insists she’s serious: “I have no intention to invest C$400M into a business and then have it fail,” she wrote in her filings.
Why It Matters
The outcome of this case will shape the fate of significant retail square footage in Canada. It also highlights broader tensions between entrepreneurial risk-taking and institutional real estate conservatism. With department stores in decline, the battle over what replaces them — and who gets to decide — is more relevant than ever.
What’s Next
The judge’s ruling on Liu’s application is pending and could come in the next few weeks. If approved, Liu may face further hurdles in convincing skeptical landlords and executing her ambitious turnaround. If denied, the properties may fast-track toward residential redevelopment, reflecting a national trend.
One thing is certain: Hudson’s Bay’s 355-year legacy isn’t fading quietly.
