In a significant legal confrontation, Hudson's Bay is facing a group of landlords who are opposing the retailer's attempt to sell approximately 28 of its leases to Ruby Liu, a billionaire from British Columbia. This dispute has been ongoing since the announcement made in May 2025 regarding Liu's selection as the purchaser of the leases.

As part of this transaction, three leases in malls owned by Liu were already transferred to her, but landlords are challenging the sale of an additional 25 leases. They argue that Liu's business plan suffers from inadequate timelines and budgetary constraints for effectively developing new department stores.

During the hearing, which commenced today, a lawyer representing Hudson's Bay insisted that the objections raised by the landlords are fundamentally misguided. She articulated that Liu should be viewed as a new tenant, offering a clean slate. According to the lawyer, Liu is in a much more favorable financial position than Hudson's Bay, as she holds no debt and possesses substantial capital resources that would allow her to secure additional funding if necessary.

Furthermore, the lawyer highlighted Liu's commitment to pay a full year of rent upfront—an arrangement that was not extended by Hudson's Bay. This proactive financial strategy demonstrates Liu's readiness to invest in the properties and her intention to revitalize the spaces into operational department stores.

The legal proceedings continue to unfold, and the outcome remains uncertain as both sides present their arguments. This legal battle signifies a crucial moment for Hudson's Bay as it navigates its financial challenges and the shift in retail dynamics. The stakes are notably high, with the outcome potentially influencing the future of department stores within the region.

Overall, the case underscores the complex relationship between retail giants and landlords, particularly in a rapidly changing market where new players like Liu are emerging with innovative approaches and financial backing.