A British Columbia-based billionaire mall owner told the Star on Wednesday that she has placed a bid on 25 Hudson’s Bay stores after publicly disclosing her intent on Chinese social media.
The Star first reported in early April that Weihong Liu, chairwoman of shopping centre company Central Walk, said on Chinese social media app RedNote that she planned to “acquire” Hudson’s Bay, adding in one video that she wanted to buy “dozens of stores.”
When asked Wednesday morning whether she had submitted a bid, Liu said “money has already been paid.” She also said she will hold a press conference in 10 days.
According to a court order allowing the sales of Hudson’s Bay assets, a “final qualified bid” must include a refundable deposit of no less than 10 per cent of the purchase price, as well as written proof that financing has been committed for the purchase. Each bid must also include a proposal for how many Hudson’s Bay employees the bidder hopes to retain.
“We need to hire workers, recruit people and attract investment, so the time is tight to get the work done. (The landlords) will hand over the keys in June and charge me rent,” Liu told the Star in Mandarin.
The beleaguered Hudson’s Bay, which has initiated a full liquidation of more than 80 stores across the country, is facing a make-or-break moment this week. Bids for the retailer’s stores and intellectual property, including its iconic stripes and logos, are due by Wednesday at 5 p.m.
If a buyer is solely interested in Hudson’s Bay leases, the bid is due Thursday.
Liu, an immigrant from China, is one of only two parties publicly identified so far as potential buyers of Hudson’s Bay assets. Her company owns Tsawwassen Mills mall, just south of Vancouver, Mayfair Shopping Centre in Victoria, and Woodgrove Centre in Nanaimo, which was put up for sale a week after Liu publicly expressed her interest in acquiring the retailer’s stores on social media.
Toronto investment manager Urbana Corp. has also made an offer for Hudson’s Bay assets, but the company’s bid is for intellectual property, not store locations.
Hudson’s Bay and those overseeing the sales have not disclosed whether they have received any suitable bids, but Adam Zalev, managing director at Bay financial adviser Reflect Advisors, said there has been “a high level of interest.”
In a video posted on April 3, Liu spoke about her decision to make a bid for the retailer’s assets. “I saw The Bay closing down, and I saw how sad Canadians were. It moved me deeply … That ignited my fighting spirit.”
She added that her intent is to “revive the retail industry, solve employment issues, create miracles, and make The Bay great again.”
Liu and her business partner, Linda Qin, posted multiple videos on RedNote in April to attract merchants and employees, apparently in an effort to prepare for acquiring locations from Hudson’s Bay.
“There are over 20 stores … These stores are in city centres — the kind of prime locations we couldn’t get into before. Hurry up, if you have merchandise,” Liu said in a video posted on April 17. She added that she is planning a warehouse sale at Hudson’s Bay retail locations after the liquidation is completed in June.
Qin added in the video that the “more than 20 stores” are located in British Columbia, Alberta and Ontario.
“It’s a once-in-300-years opportunity,” said Liu in another video posted on March 26, in which she was filmed providing a tour of Tsawwassen Mills mall.
Liu, who was an entrepreneur in China before moving to B.C., originally sold the Central Walk Shopping Mall in Shenzhen, one of the most developed cities on China’s southern border, for more than $1 billion in 2019. A year later, Central Walk moved its headquarters to Canada and started acquiring malls in B.C.
On April 23, Canada’s oldest company put six stores it originally wanted to keep in operation into liquidation after deciding there’s “low probability of receiving a viable bid based on the six-store model.” However, Hudson’s Bay remains hopeful and reserves the right to withdraw some stores from liquidation sales if a successful bid comes through the sales process.
“With the bid deadline in the sales process approaching this week, the high level of sales at the stores really helps to prove the strength of the Canadian consumer and their desire to help support Hudson’s Bay, an iconic Canadian institution,” Zalev told The Canadian Press.
If the retailer receives multiple offers for its stores and intellectual properties, it could hold an auction around May 16. Hudson’s Bay is required to return to court by May 30 for approval of the sales of its assets.
An April 22 court filing revealed 18 parties had expressed interest in a total of 65 individual leases, while 36 Hudson’s Bay leases drew no interest. The retailer is considering whether it wants to disclaim these leases and give them back to the landlords.
Multiple parties interested in the leases would also bid for other assets of the retailer, the court document said.
With files from The Canadian Press
