What: Ruby Liu’s attempt to revive 25 former Hudson’s Bay stores was blocked by a Canadian court, leaving the future of these prime retail sites uncertain.

Why it is important: The decision reflects a broader trend of landlords and investors seeking more secure, proven operators for large-format retail properties.

Ruby Liu’s ambitious plan to transform 25 shuttered Hudson’s Bay stores into a new national department store chain was halted when a Canadian bankruptcy court rejected her $120 million proposal, citing concerns from landlords and major institutional investors about her financial and operational capacity. The court’s decision, influenced by the objections of some of Canada’s largest pension funds, underscores the reluctance of property owners to enter long-term commitments with unproven retail operators. While Liu retains control of three locations within her own malls, the fate of the remaining high-profile sites remains unresolved, highlighting the broader challenges of repurposing large-format retail spaces in a changing market. The episode also marks a significant moment in the decline of Hudson’s Bay, North America’s oldest corporation, whose liquidation was driven by weak consumer spending, trade tensions, and declining foot traffic. With Canadian Tire Corporation acquiring the Hudson’s Bay brand and intellectual property, the legacy may continue in new formats, but the era of the traditional department store appears to be ending.

IADS Notes: The collapse of Hudson’s Bay in March 2025 (WWD) marked a turning point for Canadian retail, as chronic underinvestment and shifting consumer habits led to bankruptcy. Inside Retail (March 2025) highlighted the widening gap between luxury and traditional department stores, while CBC (August and July 2025) detailed the legal and financial complexities of Ruby Liu’s failed bid to revive the chain, reflecting landlords’ preference for proven operators. Canadian Tire’s acquisition of the brand in May 2025 (WWD) suggests that historic retail names may survive through new models rather than legacy store formats.

Ruby Liu court blow leaves future of 25 Hudson’s Bay stores in doubt