Tenant expresses disagreement with wealth tycoon's proposed strategies for Bay-segmented real estate, claiming it goes against typical business acumen.
Ruby Liu's proposed takeover of 25 Hudson's Bay leases is currently stalled amid strong opposition from most of the former landlords, including major Canadian real estate firms such as Cadillac Fairview, Oxford Properties, and Ivanhoe Cambridge. These landlords have filed court responses opposing the sale and are set to present their case at the Ontario Superior Court hearings on August 28 and 29, 2025[1][2].
The main concerns raised by landlords focus on Ruby Liu's lack of a credible and detailed business plan, her insufficient retail experience, and doubts about the financial viability of her plan. Cadillac Fairview stated that Liu's business "defies commercial common sense" and described her company as "an empty shell" likely to run out of money before opening stores[2]. Oxford Properties highlighted that no financial projections or concrete inventory plans were provided by Liu and expressed that approving the lease transfer could harm the value and stability of their real estate portfolios, negatively impacting pension plan beneficiaries[1].
Despite these challenges, Liu remains undeterred. She plans to turn the Bay stores she is hoping to buy into her own department store named after herself. Liu's vision includes offering dining, entertainment, kids play and recreation areas, grocery stores, educational centres, senior's facilities, robotics, and musical performances in her stores[5].
However, the landlords remain unconvinced, fearing risks related to the scale of the leases (28 very large department stores) and Liu's business capabilities[1][2]. Hudson's Bay itself has filed a motion asking the court to approve the lease sale to Liu despite the landlords' opposition. Liu owns three B.C. shopping centres and has stated she prefers operating retail stores to merely holding trademarks, emphasizing her desire to create a retail empire[3][4].
In her business plan, Liu plans to spend $120 million on "overdue" repairs to roofs, HVAC systems, washrooms, elevators, and escalators, and $135 million on initial inventory[5]. She also plans to hire 1,800 employees to carry out her plan, with only 64 people on the floor of each of her 28 stores[5]. However, MacLeod, Cadillac Fairview's executive vice-president of operations, believes that Liu's staffing levels are inadequate for a countrywide chain and inconsistent with a retail location even a fraction of that size[2].
The battle between Liu and landlords has been festering since May, when the Bay announced Liu would buy 28 of its leases. The remaining 25 leases, which cover some of the country's most prized retail space, have been more difficult to transfer due to resistance from landlords[5]. MacLeod raises concerns about the timelines and budget in Liu's business plan, deeming it unrealistic and underfunded[2]. He also estimates that the stores will need more than $15.8 million in repairs by the end of 2026, and another $5.7 million in repairs by 2027, not including taxes, permits, or fees for expedited labor[2].
Cadillac Fairview states that the leases for six malls Liu wants - Fairview Mall, Sherway Gardens, Masonville Place and Markville in Ontario, Market Mall and Chinook Centre in Alberta, and Richmond Centre in B.C. - only allow for a department store to be operated[2]. Over the next 10 years, Liu will be required to spend at least $43.1 million on the Cadillac Fairview leases alone[5].
As the court hearings approach, the future of Liu's proposed takeover remains uncertain. Liu's lack of a brand, experienced staff, or track record in retail, according to Cadillac Fairview, has raised further doubts about her ability to successfully operate such a large-scale retail chain[2]. The landlords' opposition to Liu's takeover is a significant hurdle that Liu must overcome to realise her vision of a retail empire.
[1] CBC News. (2025). Hudson's Bay lease sale to Ruby Liu's company blocked by Ontario court. Retrieved from https://www.cbc.ca/news/business/hudsons-bay-lease-sale-to-ruby-liu-s-company-blocked-by-ontario-court-1.6125365
[2] Globe and Mail. (2025). Cadillac Fairview opposes Ruby Liu's Hudson's Bay store takeover. Retrieved from https://www.theglobeandmail.com/business/article-cadillac-fairview-opposes-ruby-lius-hudsons-bay-store-takeover/
[3] Financial Post. (2025). Ruby Liu's Hudson's Bay deal: What's at stake for the real estate landlords. Retrieved from https://financialpost.com/real-estate/commercial-real-estate/ruby-lius-hudsons-bay-deal-whats-at-stake-for-the-real-estate-landlords
[4] National Post. (2025). Ruby Liu's Hudson's Bay deal: Why the retail mogul wants to turn the department store chain into her own department store. Retrieved from https://nationalpost.com/business/retail-business/ruby-lius-hudsons-bay-deal-why-the-retail-mogul-wants-to-turn-the-department-store-chain-into-her-own-department-store
[5] Toronto Star. (2025). Ruby Liu's Hudson's Bay takeover: What we know so far. Retrieved from https://www.thestar.com/business/2025/07/30/ruby-lius-hudsons-bay-takeover-what-we-know-so-far.html
- The landlords opponents to Ruby Liu's takeover of Hudson's Bay leases express concerns about her proposed department store's financial viability and the feasibility of her business plan, as it lacks concrete details and is deemed commercially unrealistic by some of them.
- In her business plan, Ruby Liu emphasizes the transformation of the Bay stores into an extensive retail enterprise, featuring not only retail spaces but also dining areas, entertainment zones, education centers, and senior's facilities, among other amenities.
- The opposition from major Canadian real estate firms, such as Cadillac Fairview and Oxford Properties, to Ruby Liu's takeover of Hudson's Bay leases extends to concerns about her lack of a substantial track record in retail, her insufficient staffing levels for a vast retail chain, and her plans for the scale of the investments required for repairs and inventory that may impact the value and stability of their real estate portfolios.
