TORONTO – A process to find takers for leases held by Hudson’s Bay has generated plenty of interest.
A new court filing made Tuesday in the department store chain’s creditor protection case said 18 unnamed parties submitted letters of intent expressing interest in a total of 65 leases.
Some of those letters were submitted by landlords and many made a play for several of the same leases, said the report from Alvarez & Marsal, a third party appointed by the court to guide Hudson’s Bay through creditor protection.
The document does not identify which of the leases sparked most attention or say who wants the properties.
Hudson’s Bay declined to comment on the document.
Alvarez & Marsal did not immediately respond to a request for comment asking for information about the potential bidders and their desired properties. Real estate broker Oberfeld Snowcap Inc., which is running the lease monetization process, also did not reply to a query.
The document offers a window into how Hudson’s Bay is faring as it works to drum up interest in the expansive properties it occupies in some of the country’s busiest shopping districts.
Roughly 100 leases were available. Hudson’s Bay has 80 stores, while Saks Off Fifth has 13 and Saks Fifth Avenue has three. They’re serviced by four distribution centres. All but six of the stores are due to close in mid-June as part of the company’s liquidation efforts.
The Alvarez & Marsal document reveals some potential lease takers are interested in other Hudson’s Bay assets being offered as part of a separate sales process, though the document does not say what assets have caught their eye. The company’s intellectual property and trademarks associated with brands like its famed Stripes are all expected to be up for grabs.
The company was making leases available rather than real estate it owns because it sold off its properties years ago. However, it operates a few stores through a joint venture with RioCan Real Estate Investment Trust and landlords have said the leases it has at other sites tend to come with preferred rates.
Businesses looking to take over from Hudson’s Bay may have to meet the same terms the retailer agreed to when it obtained its leases.
Those terms would likely force any leaseholder to use the entire property and could even stipulate the occupant be a department store, leaving few companies able to meet the requirements. If no tenant signs on under those circumstances, it’s possible a landlord could start over with a new company, and new lease terms.
Thursday’s court filing said 36 of the company’s leases did not generate any bids. Hudson’s Bay, Oberfeld and Alvarez & Marsal are now considering whether to turn them back over to the landlords.
They say their process to find bidders lead them to approach 60 parties. Some 31 signed non-disclosure agreements giving them access to confidential data to help them weigh whether to make an offer.
Binding bids for leases are due May 1 and must include a refundable deposit of 10 per cent of the purchase price.
This report by The Canadian Press was first published April 22, 2025.
