Hudson’s Bay Reaches Deals to Sell Leases for Six Store Locations
Hudson’s Bay has reached deals to sell the leases for six of its former store locations as part of its ongoing effort to recoup funds for its creditors. This marks the latest step in the company’s attempt to navigate its creditor protection process after closing its remaining stores earlier this year.
The Leases Sold and the Buyers
Legal filings show that clothing retailer YM Inc. has agreed to purchase five leases for $5.03 million. The locations include high-traffic malls like Vaughan Mills in Vaughan, Ont., Tanger Outlet in Kanata, Ont., Outlet Collection in Winnipeg, CrossIron Mills in Rocky View, Alta., and Toronto Premium Outlets in Halton Hills, Ont.
However, YM Inc. was unable to secure landlord approvals for three other locations in Pickering, Saskatoon, and Edmonton. These were intended to be purchased for $1 million.
Additionally, Ivanhoe Realties Inc. has agreed to pay $20,000 for a lease at Metrotown in Burnaby, B.C., a property owned by its parent company, Ivanhoe Cambridge.
Ongoing Legal Wrangling and Further Sales
These transactions still need court approval. Hudson’s Bay is working to finalize the sale of up to 28 leases to B.C. billionaire Ruby Liu.
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Liu is expanding her retail empire. She has already bought three leases for $6 million, including locations at:
- Woodgrove Centre in Nanaimo
- Mayfair Shopping Centre in Victoria
- Tsawwassen Mills in Delta
These deals were approved by the court last month, giving Liu control of the properties.
However, the sale of 25 more leases has run into issues. Some landlords are pushing back, claiming Liu hasn’t shown a credible plan for how she’ll use the spaces.
Hudson’s Bay has asked the court for more time. The company wants to extend its creditor protection deadline from July 31 to October 31, 2025.
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Hudson’s Bay’s Future Plans and the Impact of the Sale
The sale of the leases is part of Hudson’s Bay’s broader strategy to maximize returns for its lenders and creditors, who are owed nearly $1 billion. Since filing for creditor protection earlier this year, Hudson’s Bay has closed its 80 remaining stores and 16 under its Saks banners.
The company has put 39 of its properties up for sale, with multiple bidders, including Liu, looking to acquire the spaces. The ongoing legal proceedings and the dispute over the future of certain leases highlight the complexity of the process and the challenges involved in selling off assets during bankruptcy proceedings.
What do you think about the sale of Hudson’s Bay leases to new buyers? Will it revitalize the former retail spaces, or could it lead to further challenges? Share your opinion in the comments below.
More…
- https://globalnews.ca/news/11304682/more-hudsons-bay-lease-deals-reached
- https://www.theglobeandmail.com/business/article-hudsons-bay-reaches-more-lease-deals-across-canada-for-its-locations
- https://www.cbc.ca/news/business/hudsons-bay-leases-sold-1.7594482
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