The Globe and Mail reports in its Saturday edition that Weihong (Ruby) Liu has lost her legal battle for 25 former Hudson's Bay store leases, ending her plan to launch a department store chain in British Columbia, Alberta and Ontario. The Globe's Susan Krashinsky Robertson writes that the court decision, filed Friday, comes after months of talks with major commercial landlords.
The contentious process included Ms. Liu accusing the landlords of discrimination, and their lawyers of "corruption," while the landlords raised questions about Ms. Liu's ethics, pointed to her lack of prior experience running a retailer and said that her plan was "doomed to fail." The case's complexity led Judge Peter Osborne to take nearly two months to decide. In a recent court filing, he noted the key issue was whether to prioritize the interests of Hudson's Bay's senior lenders, owed money from the transaction, or the landlords opposing an unwanted tenant in their malls. Justice Osborne noted that he accepted the landlords' concerns about Ms. Liu's inexperience as a retailer and deemed her business plan for the stores "deficient." The company is no longer named Hudson's Bay after selling its intellectual property to Canadian Tire.
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