TORONTO – The court-appointed monitor overseeing Hudson’s Bay’s creditor protection case says it’s against landlords being forced to accept a B.C. billionaire’s plan to buy more than two dozen of the retailer’s leases.
In a new court filing made late Wednesday, Alvarez & Marsal said it does not agree that landlords should have to take on Ruby Liu as a tenant even though it says it supports the sales process that ended with her chosen to buy 28 of the Bay’s leases.
Liu purchased three Bay leases at B.C. malls that she owns for $6 million earlier this year, but her deal to buy the other 25 for $69.1 million has faced opposition from one of the retailer’s biggest lenders and most of its landlords.
They say the leases don’t allow for the dining, entertainment and recreational spaces Liu has talked about opening within department stores she hopes to operate in the properties.
They also say Liu’s timelines and budgets are too unrealistic given the amount of work and repairs their properties need.
Liu says she doesn’t think the spaces need all of the repairs landlords are demanding because the Bay was operating in the spaces without the renovations. If they are necessary, she says her company will do them, even if they exceed her current budget.
A court is expected to hear arguments from both sides next Thursday and Friday before judge Peter Osborne will rule on the matter.
Alvarez & Marsal was the last party involved with the leasing portion of the case to weigh in on Liu’s deal.
To reach its conclusion that Liu should not get the leases, the monitor reviewed her business plan and court filings from her, the Bay, lenders and landlords.
It also observed a recent cross-examination, where it said Liu testified that she was involved in preparing her business plan but does not speak English and admitted the document was not translated into Mandarin until shortly before the hearing.
“This reasonably raises concerns as to Ms. Liu’s involvement and understanding of the business plan,” the monitor said.
When it pored through all of the documentation and her statements, it determined that Central Walk, Liu’s company looking to buy the leases, “is a start-up organization with no existing operations, no brand recognition, and no track record as a retail business.”
The leadership team Liu put forward is similarly inexperienced and while she has looked to hire certain former Hudson’s Bay executives and managers, “those efforts remain incomplete,” the monitor said.
For example, it noted that Liu said in her cross-examination that she had retained former Bay president Wayne Drummond as a consultant but for only two days. She added he would not be part of her eventual operations, the monitor said.
Thus, Alvarez & Marsal concluded, “The overall lack of experience at the leadership level represents a risk to the operational viability of launching and managing 25 large department stores in the contemplated timeline.”
Liu hopes to open 19 of her 25 stores within six months of being assigned the leases. The remainder will open within 12 months.
She plans to spend $120 million on store repairs and renovations and has talked about getting inventory from merchandise management company J2.
However, Alvarez & Marsal’s report says the recent cross-examination revealed Liu no longer intends to use J2 to manage her supply chain and has not identified any other alternative.
The compressed timeline and amount of inventory she will need “represents a risk to the execution of the business plan,” the monitor ultimately found.
This report by The Canadian Press was first published Aug. 21, 2025.
