Hudson’s Bay lender fighting retailer’s Ruby Liu deal, seeking ‘super monitor’: docs

Hudson’s Bay signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj

TORONTO — One of Hudson’s Bay’s biggest lenders is asking a court to stop the defunct retailer from selling up to 25 of its leases to a B.C. billionaire and appoint a “super monitor” to more speedily liquidate the remainder of its assets.

A new court motion filed by investment manager Restore Capital LLC says the deal the Bay reached with Ruby Liu should be terminated because trying to get landlord approvals to transfer the leases has been costly and fruitless.

Liu signed two deals with the Bay in May. The court last month approved the $6 million sale of three leases for stores at B.C. malls she owned.

The second deal was for up to 25 more leases in Alberta, B.C. and Ontario. Landlords at the properties have overwhelmingly opposed taking on Liu as a tenant because they say she has not provided them with a practical business plan.

Restore’s motion says the Bay has “frittered away” its collateral because the retailer has incurred exorbitant rent costs and professional fees in its efforts to get landlords on board but has yet to secure support or seek court approval.

Restore wants the court to expand the powers of a monitor appointed to guide the Bay through CCAA, so the company can be wound down. If the court doesn’t agree to a “super monitor” arrangement, it suggests appointing Richter Consulting Inc. as a receiver.

This report by The Canadian Press was first published July 9, 2025

Tara Deschamps, The Canadian Press