TORONTO — A B.C. billionaire who wants to buy some Hudson’s Bay leases says landlord claims that she won’t be able to run a successful business in their spaces are "misguided."
In new court documents filed overnight Wednesday, Ruby Liu says she is prepared to do what is necessary to make her venture successful and if it makes landlords more confident in her plan, will personally guarantee the first year of rent she’ll have to pay them.
"I would not have undertaken this process, expended the time and several million dollars that I have to date, committed my considerable wealth going forward, and proceeded despite the objections of the landlords if I was not fully prepared to fund this venture," she said in an affidavit.
"I have no intention to invest $400 million into a business and then have it fail after such a significant expenditure."
Liu wants to buy 25 former Bay leases to turn them and three others she bought at B.C. malls she owns — Tsawwassen Mills, Mayfair Shopping Centre in Victoria and Nanaimo's Woodgrove Centre — into a new department store with entertainment, dining and recreation spaces.
Landlords, including Cadillac Fairview, Oxford Properties, Ivanhoe Cambridge, have said their leases don’t allow for such uses and even if they did, Liu’s timelines and budgets are too "unrealistic" given the amount of work and repairs their properties need.
A judge will hear arguments on whether landlords should be forced to let Liu move in at the end of August.
Liu has said she thinks she can get at least 20 stores open within 180 days of obtaining leases. Some of her estimates show she will spend $120 million on repairs to roofs, HVAC systems, washrooms, elevators and escalators. Landlords believe renovations will require much more money.
Liu disagrees. While she does believe many locations will need changes to their roofs, ceilings, lights and more, she says "some of the work is only cosmetic and not everything needs to be taken down to the bare walls."
"For many stores, minimal renovations are needed," she said.
In its own affidavit, the Bay takes Liu's side, pointing out it was operating in the spaces she wants without the renovations landlords are outlining as necessary.
While some of the repairs landlords have identified were discussed with the Bay previously, failure to tackle them never resulted in a landlord providing the retailer with a notice of default, said Franco Perugini, the Bay's senior vice-president of real estate and legal.
"Therefore, it is surprising for me to read the objections of the objecting landlords claiming that (Ruby's) investment of $120 million into repairs and renovations of their stores will be insufficient when it significantly exceeds any amount that Hudson’s Bay was planning to invest," he said.
If her budget winds up to be insufficient, Liu says she will fund the extra work and will explore staged renovations that allow certain parts of a store to open for business sooner, while other parts of the store get repaired.
She also used her affidavit to counter landlord assertions that she doesn't have suppliers willing to commit merchandise to her stores. Liu said she has had ongoing discussions with suppliers, even though she can't finalize merchandise agreements with them until she knows if a court will give her the leases.
She provided the court with letters from 11 companies saying they are willing to work with her. The most prominent senders were hair tools maker Conair, women's apparel retailer Northern Reflections and Indeka Group, which imports Calvin Klein, Tommy Hilfiger and Dockers clothing.
"Many of the above potential suppliers have indicated that they have inventory in warehouses in Ontario and/or Quebec, some of which was previously ordered but not claimed by the Bay, and will be able to fill orders within weeks if needed," Liu said.
She also appended a letter from Mimran Group Inc., whose namesakes Joe and Saul were behind Club Monaco and Loblaw Cos. Ltd.'s Joe Fresh.
The letter from executive vice-president Jordin Mimran pitches Liu on an opportunity to acquire trademarks and other intellectual property belonging to Canadian fashion brand Alfred Sung.
"I believe this strategic alliance could bring immediate substance and credibility to your New Bay transformation — both in the courtroom and with Canadian consumers," Jordin says in a letter.
The Bay's Perugini positioned the landlords as trying to discount such efforts from Liu because if they get their leases back, they "will be afforded much greater latitude to pursue projects that may include mixed-use developments, new retail concepts, or even residential towers."
He said Oxford Properties wants to transform Hillcrest Mall in Richmond Hill, Ont., into a mixed-use area for commercial, office, residential and recreational spaces.
Cadillac Fairview also has plans to redevelop Markville Mall in Markham, Ont., as well as Fairview Mall in Toronto, while Morguard wants to turn Centerpoint Mall in Toronto into a transit-oriented community with residential, commercial, open space and community uses.
"In many instances, terminating Hudson’s Bay’s leases will enable landlords to more fully realize the value of their properties, especially in terms of revenue generation," Perugini said.
This report by The Canadian Press was first published Aug. 13, 2025.
Tara Deschamps, The Canadian Press
