TORONTO – Hudson’s Bay is firing back at one of its biggest lenders.
A new court filing from the defunct department store’s chief financial officer pushes back on accusations it mishandled its liquidation and is hopelessly pursuing a deal to sell 25 of its leases.
Michael Culhane says it’s neither fair nor credible for Hilco to criticize the Bay for matters that were foreseeable, inevitable or caused by the investment company itself, which has a subsidiary that served as the Bay’s lead liquidator.
Hilco and its affiliate, lender Restore Capital, have accused the Bay of bungling the retailer’s liquidation by failing to close stores properly and remove fixtures and equipment.
They also say the Bay is frittering away their collateral by pushing a deal to sell about two dozen leases to B.C. billionaire Ruby Liu, who landlords do not want to move in.
They want the deal, which still needs landlord approval, terminated but the Bay maintains it should move ahead because it will recoup significant cash for its lenders and other creditors.
