Hudson’s Bay hearing on lease deal adjourned as Ruby Liu appears without lawyer

Billionaire Ruby Liu listens during an interview at a former Hudson's Bay-owned Saks Off 5th department store after a "handover ceremony" where she received the keys to the space at Tsawwassen Mills shopping mall that she owns, in Tsawwassen, B.C., on Thursday, June 26, 2025. THE CANADIAN PRESS/Darryl Dyck

TORONTO -- B.C. billionaire Ruby Liu and her bid to buy up to 25 Hudson’s Bay leases was due to come under further scrutiny in court Tuesday -- but the battle was waylaid when she showed up with no lawyer or materials to aid in making her case.

Judge Peter Osborne adjourned the hearing “for a short period of time,” telling Liu “I not only urge but recommend in the strongest terms” that she hire a lawyer to represent her and her plans to buy the leases.

“There are significant concerns being expressed about those plans, so it is important for me to hear from you fully about what those plans are,” he said.

Liu signed deals with the Bay in May to buy up to 28 leases in Alberta, B.C. and Ontario belonging to the defunct retailer and its sister banner Saks. She planned to use the properties to open a department store named after herself.

Three of the spaces in B.C. malls she owns were transferred to her last month after receiving court approval. The Bay has yet to seek that assent for up to 25 more in properties held by other landlords, who are overwhelmingly opposed to Liu moving in because they say she’s yet to provide detailed business plans.

Documents filed in the lead up to Tuesday’s hearing in Ontario Superior Court, showed Bay lender Restore Capital LLC and its affiliate Hilco Global were due to join the opposition.

Restore, part of a group that loaned the Bay $151.4 million, planned to ask Osborne to terminate the retailer’s 25-lease deal because it is “uneconomical and imprudent.”

The longer the Bay goes without landlord or court approval, the more Restore’s collateral is being “frittered away,” the firm said.

Alvarez & Marsal, the monitor previously appointed to guide the court process, estimated it’s costing at least $4.7 million in rent, property taxes, utilities and other fees each month that the Liu deal goes unapproved.

In a filing made just after midnight on Tuesday, it said it wrote to Liu repeatedly reminding her of her obligations and seeking information that could be used to get the court to assign her the leases without landlord approval.

The monitor said Liu has “not meaningfully responded,” provided landlords with more information that might get them onside or even taken “the most basic and necessary steps” to advance her bid.

Liu previously provided landlords with information about her plans and believes they will welcome her if a court assigns her the leases.

“We will work closely with HBC and have already hired experts,” Liu told Osborne on Tuesday, speaking in Mandarin that was translated by Linda Qin, the CEO of her company. “We are ready to open the stores.”

Liu said she intends to hire a new lawyer. She was previously represented by both Cassels Brock & Blackwell LLP and Miller Thomson but has parted ways with each.

Gavin Finlayson, a Miller Thomson lawyer, appeared in court to confirm he was no longer representing Liu, but did not say why.

Speaking to reporters outside the courthouse later, Liu said she had been dropped by her lawyer “all of a sudden” on Sunday after a disagreement over whether his firm should be paid $3 million more to represent her.

Liu said her legal counsel was the topic of a letter she sent Osborne, but declined to offer further details. Osborne had advised her during the court session that parties are not to communicate with the judge outside of the hearing.

Finlayson did not immediately respond to a request for comment.

Osborne pressed Liu to find a lawyer in part because it will help her navigate the Bay’s creditor protection case, which began in March, when the retailer admitted it was unable to cover bills and had no hope of finding lender support.

A sales process uncovered no one willing to buy the business, so it liquidated all 80 of its stores and 16 Saks locations.

The company got 12 bids for 39 leases but chose Liu to buy 28 because the terms she offered were “the most favourable.”

A copy of the agreement she entered with the Bay was given to the court over the weekend but sealed. Prior filings, however, show Liu made a deposit of $9.4 million, which would equate to a purchase price of $94 million for 25 leases.

A package prepared by Liu’s former lawyers and obtained by The Canadian Press early June shows she told landlords she could open stores within 180 days of receiving leases and would pour millions into rehabilitating properties.

Landlords almost immediately panned her plans, saying she doesn’t have the suppliers, financing or retail management experience to run a department store.

Bay lawyer Ashley Taylor told Osborne there has since been “an ongoing dialogue” between Liu and stakeholders. David Bish, who represents Cadillac Fairview, disagreed and said the landlords remain “deeply concerned.”

“This is the hill to die on for landlords,” Bish said.

To aid in the Bay’s wind down, Restore wants the court to appoint a “super monitor” to subject the department store chain to even more oversight. If the court doesn’t agree, Restore suggests appointing Richter Consulting Inc. as a receiver.

The Bay argued it doesn’t need more oversight because it’s properly governed. It maintains the Liu deal is the best shot it has at recovering more cash for creditors.

Pathlight Capital LP, one of the Bay’s other lenders, supports the Liu transaction but won’t finance the extra time it could take to close the deal.

Meanwhile, the monitor said more oversight may be appropriate at some point. It’s prepared to step up, when necessary.

Its report also revealed the Bay has several other lease deals in the works. One has been reached with a landlord wanting to buy its own lease for less than $250,000. Another is with an unnamed party wanting seven leases.

Tara Deschamps, The Canadian Press

This report by The Canadian Press was first published July 15, 2025.