By Tara Deschamps
A brand new court docket submitting made Tuesday within the division retailer chain’s creditor safety case stated 18 unnamed events submitted letters of intent expressing curiosity in a complete of 65 leases.
A few of these letters had been submitted by landlords and plenty of made a play for a number of of the identical leases, stated the report from Alvarez & Marsal, a 3rd celebration appointed by the court docket to information Hudson’s Bay by creditor safety.
The doc doesn’t establish which of the leases sparked most consideration or say who needs the properties.
Hudson’s Bay declined to touch upon the doc.
Alvarez & Marsal didn’t instantly reply to a request for remark asking for details about the potential bidders and their desired properties. Actual property dealer Oberfeld Snowcap Inc., which is operating the lease monetization course of, additionally didn’t reply to a question.
The doc affords a window into how Hudson’s Bay is faring as it really works to drum up curiosity within the expansive properties it occupies in among the nation’s busiest buying districts.
Roughly 100 leases had been out there. Hudson’s Bay has 80 shops, whereas Saks Off Fifth has 13 and Saks Fifth Avenue has three. They’re serviced by 4 distribution centres. All however six of the shops are as a consequence of shut in mid-June as a part of the corporate’s liquidation efforts.
The Alvarez & Marsal doc reveals some potential lease takers are fascinated about different Hudson’s Bay belongings being supplied as a part of a separate gross sales course of, although the doc doesn’t say what belongings have caught their eye. The corporate’s mental property and logos related to manufacturers like its famed Stripes are all anticipated to be up for grabs.
The corporate was making leases out there slightly than actual property it owns as a result of it offered off its properties years in the past. Nevertheless, it operates a couple of shops by a three way partnership with RioCan Actual Property Funding Belief and landlords have stated the leases it has at different websites have a tendency to come back with most popular charges.
Companies trying to take over from Hudson’s Bay could have to fulfill the identical phrases the retailer agreed to when it obtained its leases.
These phrases would doubtless power any leaseholder to make use of all the property and will even stipulate the occupant be a division retailer, leaving few firms capable of meet the necessities. If no tenant indicators on underneath these circumstances, it’s potential a landlord may begin over with a brand new firm, and new lease phrases.
Thursday’s court docket submitting stated 36 of the corporate’s leases didn’t generate any bids. Hudson’s Bay, Oberfeld and Alvarez & Marsal are actually contemplating whether or not to show them again over to the landlords.
They are saying their course of to search out bidders make them method 60 events. Some 31 signed non-disclosure agreements giving them entry to confidential information to assist them weigh whether or not to make a proposal.
Binding bids for leases are due Might 1 and should embody a refundable deposit of 10% of the acquisition value.
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commercial real estate Hudson’s Bay leases real estate real estate market RioCan Real Estate Investment Trust The Canadian Press
Final modified: April 25, 2025