Latest news with #leases
CBC
21 hours ago
- Business
- CBC
Hudson's Bay landlords don't want Ruby Liu to move in, but retailer still has a shot
Social Sharing A group of Hudson's Bay's landlords don't want to transfer more than two dozen leases to B.C. billionaire Weihong (Ruby) Liu, but the department store still has a chance to get its way. The Bay, which filed for creditor protection in March, ran a process over the last several months to find buyers for leases belonging to it and Saks Canada. It agreed to sell up to 28 spaces to Liu. Three leases were transferred to her without any hiccups because they're in B.C. malls she owns, but another 25 are at properties held by a who's who of Canadian commercial real estate firms. Landlords for 23 of those sites oppose the transfer. Several have said in court they've been "very troubled" with their interactions with Liu and have had "no productive discussions, no meaningful disclosure." Liu insists if the court hands her the leases, landlords will warm to her and her plan to open a new department store in their properties. While the disagreement could serve as a roadblock to the Bay closing on its agreement with Liu, lawyers not involved in the case say the retailer has another route it can take to get a deal done. That route lies in changes to the Companies' Creditors Arrangement Act (CCAA) — Canada's main insolvency law — made in 2009, said Jeff Lee, a Saskatoon-based partner at MLT Aikins LLP. The changes laid out three criteria courts must consider when asked to assign leases to a new tenant. WATCH | Who is Ruby Liu? Who is Hudson's Bay benefactor and billionaire Ruby Liu? 3 days ago Duration 6:16 Ruby Liu, a billionaire with a big vision, now has legal permission to take over the leases of three former Hudson's Bay department stores located at three malls already under her ownership. For more on the new Bay benefactor, we're joined by retail analyst Carl Boutet. The first is whether or not the sale has the support of the monitor, a court-appointed, independent third party which helps guide businesses through creditor protection. In the Bay's case, the monitor is Alvarez & Marsal. It has yet to reveal whether it supports the Liu deal and did not respond to requests for comment. "Before any court application is brought forward, typically the company will test that out with them," Lee said. "They're not going to just sort of fly in blind and hope for the best." The second aspect for the court to mull is whether the proposed new tenant is suitable. Lee said that's determined by looking at whether they can perform the duties of the tenant and pay rent. Liu, who made her money in Chinese real estate, appears to have deep pockets but her experience comes from being a landlord rather than a tenant. The final aspect the court will consider is whether a transfer of a lease to Liu is "appropriate." Lee said people should think of it as asking this question: "Is what's proposed for this post-assignment lease relationship what people signed up for, or are they seeking to rewrite the lease or change the playing field so radically that it's not appropriate?" WATCH | What went wrong for Hudson's Bay: What went wrong with Hudson's Bay? 3 months ago Duration 5:49 That's where much of the tension could lie in the Bay case. "You can't go into CCAA as a tenant and then force your landlords to renegotiate their leases as a result," said Peter Tolensky, a Vancouver-based partner at Lawson Lundell LLP. The Canadian Press obtained a document last week that Liu's lawyer sent landlords outlining her plans. It says she will take on the leases on an "as is, where is" basis but doesn't mention the dining, entertainment, children's and fitness experiences she's told media she'd like to include in her department stores. It's unclear whether the leases allow for uses other than a Bay-like department store. Some lenders owed more than $100M A court faced with a request to reassign leases will weigh this context and think about whether "the landlord's world is being turned upside down by having this new tenant," said Geoffrey Dabbs, a B.C.-based founding partner at Gehlen Dabbs Cash. "The more it's a minor inconvenience for the landlord, the more likely the judge will order it," he said. While the Bay hasn't said whether it will seek an assignment, it's likely because any company in creditor protection has a duty to show the court it's doing its best to pay back companies and people it owes money to, Dabbs said. The Bay has a 26-page list of creditors, with some lenders owed more than $100 million each. Liquidation sales and a deal to sell the Bay trademarks to Canadian Tire for $30 million have put a dent in what's owed but selling leases to Liu would also help. Anyone who made an offer for leases had to make a deposit of 10 per cent of their estimated purchase price. Court documents show Liu made a deposit of $9.4 million, in addition to $6 million for the three approved leases, which would equate to a purchase price of $100 million for 28 leases. When a deal like this is reached, Dabbs said a company typically seeks landlord consent because commercial leases tend to have provisions stopping anyone from transferring a lease without a property owner agreeing. It's not uncommon for landlords to object because any leases that can't be sold and aren't assigned get turned back over to property owners who can choose how to fill them and under what terms. These are anchor leases, Tolensky noted. "So they're probably very favourable to the Bay or to the tenant in a lot of respects," Tolensky said, alluding to the fact that anchor tenants are often given attractive rents or terms. Thus, it's more advantageous for landlords to get their properties back, said Monica Beffa, founder of an Oakville, Ont., law firm. If they do, they can then charge higher rents, develop them for entirely new uses such as residential units or break them up into smaller parcels that can be rented by a wide array of tenants. If they don't and a court assigns the leases to Liu, landlords will likely be watching her closely to ensure she doesn't violate any terms of the agreement. Dabbs said: "The landlord may be cranky, if the tenant breaches, but put it this way, they don't want to rely on that.
Yahoo
a day ago
- Business
- Yahoo
Hudson's Bay landlords don't want Liu to move in, but retailer still has a shot
TORONTO — A group of Hudson's Bay's landlords don't want to transfer more than two dozen leases to British Columbia billionaire Ruby Liu, but the department store still has a chance to get its way. The Bay, which filed for creditor protection in March, ran a process over the last several months to find buyers for leases belonging to it and Saks Canada. It agreed to sell up to 28 spaces to Liu. Three leases were transferred to her without any hiccups because they're in B.C. malls she owns, but another 25 are at properties held by a who's who of Canadian commercial real estate firms. Landlords for 23 of those sites oppose the transfer. Several have said in court they've been "very troubled" with their interactions with Liu and have had "no productive discussions, no meaningful disclosure." Liu insists if the court hands her the leases, landlords will warm to her and her plan to open a new department store in their properties. While the disagreement could serve as a roadblock to the Bay closing on its agreement with Liu, lawyers not involved in the case say the retailer has another route it can take to get a deal done. That route lies in changes to the Companies' Creditors Arrangement Act — Canada's main insolvency law — made in 2009, said Jeff Lee, a Saskatoon-based partner at MLT Aikins LLP. The changes laid out three criteria courts must consider when asked to assign leases to a new tenant. The first is whether or not the sale has the support of the monitor, a court-appointed, independent third party which helps guide businesses through creditor protection. In the Bay's case, the monitor is Alvarez & Marsal. It has yet to reveal whether it supports the Liu deal and did not respond to requests for comment. "Before any court application is brought forward, typically the company will test that out with them," Lee said. "They're not going to just sort of fly in blind and hope for the best." The second aspect for the court to mull is whether the proposed new tenant is suitable. Lee said that's determined by looking at whether they can perform the duties of the tenant and pay rent. Liu, who made her money in Chinese real estate, appears to have deep pockets but her experience comes from being a landlord rather than a tenant. The final aspect the court will consider is whether a transfer of a lease to Liu is "appropriate." Lee said people should think of it as asking this question: "Is what's proposed for this post-assignment lease relationship what people signed up for, or are they seeking to rewrite the lease or change the playing field so radically that it's not appropriate?" That's where much of the tension could lie in the Bay case. "You can't go into CCAA as a tenant and then force your landlords to renegotiate their leases as a result," said Peter Tolensky, a Vancouver-based partner at Lawson Lundell LLP. The Canadian Press obtained a document last week that Liu's lawyer sent landlords outlining her plans. It says she will take on the leases on an "as is, where is" basis but doesn't mention the dining, entertainment, children's and fitness experiences she's told media she'd like to include in her department stores. It's unclear whether the leases allow for uses other than a Bay-like department store. A court faced with a request to reassign leases will weigh this context and think about whether "the landlord's world is being turned upside down by having this new tenant," said Geoffrey Dabbs, a B.C.-based founding partner at Gehlen Dabbs Cash. "The more it's a minor inconvenience for the landlord, the more likely the judge will order it," he said. While the Bay hasn't said whether it will seek an assignment, it's likely because any company in creditor protection has a duty to show the court it's doing its best to pay back companies and people it owes money to, Dabbs said. The Bay has a 26-page list of creditors, with some lenders owed more than $100 million each. Liquidation sales and a deal to sell the Bay trademarks to Canadian Tire for $30 million have put a dent in what's owed but selling leases to Liu would also help. Anyone who made an offer for leases had to make a deposit of 10 per cent of their estimated purchase price. Court documents show Liu made a deposit of $9.4 million, in addition to $6 million for the three approved leases, which would equate to a purchase price of $100 million for 28 leases. When a deal like this is reached, Dabbs said a company typically seeks landlord consent because commercial leases tend to have provisions stopping anyone from transferring a lease without a property owner agreeing. It's not uncommon for landlords to object because any leases that can't be sold and aren't assigned get turned back over to property owners who can choose how to fill them and under what terms. "Remember, these are anchor leases, so they're probably very favourable to the Bay or to the tenant in a lot of respects," said Tolensky, alluding to the fact that anchor tenants are often given attractive rents or terms. Thus, it's more advantageous for landlords to get their properties back, said Monica Beffa, founder of an Oakville, Ont., law firm. If they do, they can then charge higher rents, develop them for entirely new uses such as residential units or break them up into smaller parcels that can be rented by a wide array of tenants. If they don't and a court assigns the leases to Liu, landlords will likely be watching her closely to ensure she doesn't violate any terms of the agreement. "The landlord may be cranky, if the tenant breaches, but put it this way, they don't want to rely on that," Dabbs said. "If they don't want this lease being assigned, they will fight it right up front." This report by The Canadian Press was first published June 28, 2025. Tara Deschamps, The Canadian Press
Yahoo
a day ago
- Business
- Yahoo
IASB seeks feedback on IFRS 16 in post-implementation review
The International Accounting Standards Board (IASB) has launched a formal post-implementation review of IFRS 16 Leases, inviting stakeholders to share their experiences and insights on whether the standard is working as intended. A Request for Information (RFI) has been published as part of this process, with comments due by 15 October 2025. Issued in January 2016 and effective from January 2019, IFRS 16 introduced a major shift in lease accounting by requiring lessees to bring most leases onto the balance sheet. The standard eliminated the distinction between finance and operating leases for lessees, replacing it with a single lease accounting model. The move aimed to improve transparency and comparability in financial reporting by recognising lease assets and liabilities more consistently. Now, more than five years since implementation, the IASB is reviewing whether the standard has delivered the intended benefits and whether the costs of applying IFRS 16 are justified. Stakeholders—including preparers, users, auditors, and regulators—are encouraged to provide feedback on key aspects such as: Usefulness and comparability of information when judgement is applied in measuring lease liabilities; The relevance of disclosures about lease-related cash flows; The cost and complexity for lessees in applying the measurement requirements; and Interactions between IFRS 16 and other IFRS Accounting Standards. Participants are also invited to share their overall views on the effectiveness and clarity of the standard. "IASB seeks feedback on IFRS 16 in post-implementation review" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Hudson's Bay to seek approval for sale of three leases to B.C. mall owner Ruby Liu
TORONTO — Hudson's Bay is expected back in court this morning where it will ask a judge to let it sell three of its leases to a B.C. mall owner. The defunct department store wants to transfer its leases for Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre to Ruby Liu. The real estate maven, who leads a company that owns all three malls, has offered $6 million for the trio of leases. She also wants up to 25 more leases at malls she does not own but Hudson's Bay is still working on getting approval from landlords, who are overwhelmingly objecting. Aside from the request to sell three leases to Liu, the Ontario Superior Court will also be asked to change the name of the department store company in creditor protection to avoid confusion that could arise now that Canadian Tire owns the rights to the Bay name. The name change is standard in cases where someone has bought the rights to a collapsing company's name. Canadian Tire Corp. Ltd. bought the Bay name and its trademarks for $30 million. This report by The Canadian Press was first published June 23, 2025. Companies in this story: (TSX:CTC.A) Tara Deschamps, The Canadian Press
CTV News
19-06-2025
- Business
- CTV News
B.C. mall owner's push to buy 25 Hudson's Bay leases faces landlord opposition: docs
A Hudson Bay Company store in Toronto is shown on Monday, January 27, 2014. THE CANADIAN PRESS/Nathan Denette New court documents show that the landlords of former Hudson's Bay properties overwhelmingly oppose the department store's sale of leases to a B.C. entrepreneur. The documents filed by a court monitor appointed to help the Bay through creditor protection say landlords representing 23 leases in a group of 25 Liu purchased won't approve the plan. Court monitor Alvarez & Marsal says the landlords have also said they will oppose any future moves that would force them to accept the lease deal the Bay signed with Liu. As well as the group of leases the landlords oppose Liu also plans to buy three real estate contracts the Bay had at B.C. malls she owns. The Bay will ask a court to approve that deal Monday. In addition to the Liu deals, Alvarez & Marsal say an unnamed party is interested in up to eight leases in Ontario, Alberta, Saskatchewan and Manitoba. It says another lease transaction the Bay signed fell through after an unnamed company refused to correct errors in an agreement and then backed away from the purchase. This report by Tara Deschamps, The Canadian Press, was first published June 19, 2025.
