A B.C. billionaire, Ruby Liu, has lost her high-profile attempt to take over dozens of former Hudson’s Bay store locations after an Ontario Superior Court ruled against her on Friday.

Justice Peter Osborne decided that the landlords of the shuttered retail giant are not obligated to accept Liu as a tenant, expressing “significant concerns” about her ability to meet the lease terms she sought.

A Setback After Months of Legal Battles

The decision caps months of legal wrangling involving Liu, the landlords of collapsed Hudson’s Bay properties, and the retailer’s creditors. Hudson’s Bay and its primary lender had supported Liu’s bid, while some of Canada’s biggest commercial landlords — Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge — strongly opposed it.

The ruling followed an extensive review of more than 25,000 pages of legal filings from landlords, investors, and corporate representatives.

Hudson’s Bay’s $1.1 Billion Debt Collapse

The case stems from Hudson’s Bay Co. (HBC) filing for creditor protection in March amid $1.1 billion in debt. After failing to find a buyer, the company began liquidating its 80 department stores and 16 Saks Off 5th outlets, turning next to selling off leases, intellectual property, and artwork.

A formal bidding process for 39 retail leases attracted a dozen offers. YM Inc., the parent company of Bluenotes and Urban Planet, acquired five leases for $5 million, while one lease went to a landlord for just $20,000.

Liu’s Ambitious Vision for a New Department Store Chain

Liu emerged as the top bidder with an offer of $69.1 million for 25 former Hudson’s Bay leases, with plans to launch a new department store chain under her own name — “Liu.”

Three of her proposed leases — located at Woodgrove Centre, Mayfair Shopping Centre, and Tsawwassen Mills, all in British Columbia — were approved earlier since Liu already owns those malls.

However, the remaining locations became the subject of a heated dispute between Liu and major commercial landlords, who argued that her financing and business plan were unclear.

What Happens Next

While Hudson’s Bay Co. declined to comment on the court decision, and Liu’s team did not immediately respond to requests from The Canadian Press, both parties retain the right to appeal. As of now, neither side has announced plans to do so.

Justice Osborne’s ruling means the remaining leases will return to the pool of available retail spaces as Hudson’s Bay’s liquidation process continues.