Hudson’s Bay and Lender Claim Landlords Have Hidden Agendas

In a developing legal dispute, Hudson’s Bay and its lender, Pathlight Capital, have accused landlords of having “ulterior motives” in their opposition to the sale of 25 leases to Ruby Liu, a billionaire from British Columbia. The allegations come as both parties prepare for a court hearing next week aimed at determining whether Liu should be allowed to acquire these leases.

According to new court documents, Hudson’s Bay and Pathlight Capital argue that the landlords are primarily motivated by a desire to regain control of the properties. This would allow them to circumvent existing lease restrictions that limit how the spaces can be utilized. The lenders assert that some landlords plan to redevelop the properties for various uses, including commercial, residential, and recreational purposes.

Details of the Dispute

Pathlight Capital’s assertions suggest that the landlords’ resistance to the sale is not merely about Liu’s business plan but rather reflects their intentions to capitalize on the properties themselves. The lenders maintain that if the landlords were to reclaim control, they would be free to pursue their redevelopment ambitions without the constraints imposed by existing leases.

While Pathlight and Hudson’s Bay are pushing for the sale to proceed, landlords have countered by arguing that Liu’s proposal lacks realism. They contend that her business plan does not demonstrate the necessary financial backing or experience required to successfully launch and operate a new department store in the challenging retail landscape.

The upcoming court hearing is critical, as it will address these conflicting views and determine the future of the leases in question. Pathlight Capital aims to present a strong case that challenges the landlords’ motives while advocating for Liu’s potential acquisition.

Implications for Retail and Real Estate

This case underscores broader trends in the retail sector, where many traditional department stores are facing significant challenges. The outcome could influence not only the future of Hudson’s Bay but also set a precedent for how similar disputes are handled in the real estate market.

As the situation unfolds, stakeholders in both the retail and real estate sectors will be closely monitoring the court’s decision, which could have lasting implications for property management and leasing strategies across the industry.

This report reflects the latest developments as of August 22, 2025, and will continue to evolve as new information emerges.