Hudson’s Bay has repeatedly threatened to end lease deal with B.C. billionaire: docs

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TORONTO — New court filings say Hudson’s Bay has threatened to end a lease deal it has with a B.C. billionaire who wrote directly to a judge twice — against the retailer’s advice — to try to persuade him to view her favourably.

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In a 50-page package of materials Ruby Liu sent to Ontario Superior Court judge Peter Osborne, she positions her multimillion-dollar agreement to buy 25 leases held by the defunct retailer and its Saks Canada banners as being in jeopardy.

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“HBC has repeatedly threatened to terminate our agreement and forfeit our deposit,” she said in the note dated July 10, which was entered into the court record Tuesday.

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Neither Liu nor Hudson’s Bay immediately responded to a request for comment Tuesday on the new filings.

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Liu, who owns three B.C. malls and a golf course, struck two deals to buy Bay leases in May, about two months after the beleaguered retailer filed for creditor protection under the weight of $1.1 billion in debt.

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The first Liu deal was valued at $6 million and covered three leases in malls she owns. It was approved by a court last month.

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The second deal is for 25 more leases. It came with a deposit of $9.4 million, which would equate to a purchase price of $94 million, but has yet to be presented to the court.

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Osborne has given the Bay until Tuesday to file a motion requesting court approval for the second deal. It has yet to be filed but the deal is being vehemently fought by landlords opposed to her moving into their properties because she has not given them enough information about her plans for their spaces.

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If she can obtain the leases, Liu has said she will use them to open a self-named department store that will feature retail, dining, entertainment and recreational spaces.

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The new documents filed with the court Tuesday include two notes sent to Osborne, which warranted a letter from the office of the chief justice reminding Liu that parties in active cases should not, under any circumstances, reach out to judges.

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Liu said in one of the two notes that she felt “compelled” to reach out to the judge because she wants him to understand a bit more about who she is.

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In the first of the letters, she describes her upbringing in China and move to Canada before saying, “I am a person of great capability, and I ask you — please give me a chance.”

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“Through transformation, I will create brilliance again,” she wrote.

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The second asks him to “uphold justice” and is appended with several letters from the Bay’s lawyers to Liu and her previous lawyers urging her to take action or risk the deal falling apart.

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In one of those notes, the Bay’s lawyers say Liu has “continuously failed to use commercially reasonable efforts” to get landlord approval for her deal during meetings with the array of property owners who must consent to her moving in.

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“The purchaser chose to ignore the vendor’s advice and did not prepare any substantive materials or presentation for the landlord meetings and failed to provide adequate responses to basic questions from the landlords regarding the proposed tenant’s financial covenant, retail operation experience, capital expenditures plan for each lease location and intended suppliers and product mix,” one letter to Liu reads.