TORONTO — Cadillac Fairview says a plan from a B.C. billionaire hoping to take over 25 former Hudson's Bay leases “defies commercial common sense” and thus, she should not be allowed to move in.
In filings made with the Ontario Superior Court on Saturday, Cadillac Fairview says it is “resolutely opposed” to Liu becoming a tenant at some of its malls because she has no detailed or credible business plan.
The mall owner also says Liu, who owns three B.C. shopping centres herself, has no brand, experienced staff or track record in retail.
Her business is “an empty shell without any guarantee of financial means beyond Ms. Liu’s bare assertion that she will keep it afloat,” said Rory MacLeod, Cadillac Fairview’s executive vice-president of operations, in an affidavit. “All of the indications are that (her company) will run out of money before the first store opens.”
MacLeod’s affidavit ups the ante in a battle that has been festering between Liu and landlords since the Bay announced in May that it had chosen her to buy 28 of its leases. The first three got court approval and were transferred in short order because they were at Liu’s three malls.
The remaining 25, however, have been much more fraught. Those leases cover some of the country’s most prized retail space and came with cheaper rent and very attractive terms for the Bay, which filed for creditor protection under the weight of tremendous debt in March.
For example, the Bay paid $1.3 million in annual rent for 152,420 square feet at Fairview Mall in Toronto, court documents show, which is a fraction of what non-anchor tenants would pay.
Unable to get most landlords onside with a lease transfer, the Bay asked a court at the end of July to force property owners to accept Liu as a tenant.
Liu and the Bay have until next Tuesday to respond to Cadillac Fairview's allegations. A judge will hear the matter at the end of the month.
Liu has said she wants to turn the Bay stores she is hoping to buy into her own department store named after herself. She has repeatedly told The Canadian Press her stores will not just offer retail space but also dining, entertainment, kids play and recreation areas.
MacLeod says she's also talked of outfitting Bay spaces with grocery stores, educational centres, senior's facilities, robotics and musical performances.
Cadillac Fairview says leases at the six malls she wants from the company — Fairview Mall, Sherway Gardens, Masonville Place and Markville in Ontario, Market Mall and Chinook Centre in Alberta and Richmond Centre in B.C. — don't allow for anything other than a department store to be operated there.
"Despite her private assurances that she intends to respect the lease terms, Ms. Liu has consistently presented a different idea to the public, one that would not be compatible with the leases," MacLeod said.
His affidavit also raised concerns with the timelines and budget in her business plan.
Liu has said she will be ready to open at least 20 stores within 180 days of obtaining leases and will spend $120 million on "overdue" repairs to roofs, HVAC systems, washrooms, elevators and escalators and $135 million on initial inventory.
Cadillac Fairview says her proposed timeline is "entirely unrealistic" for a new brand, let alone an established one, and her plan is underfunded based on the high number of repairs properties need and expensive terms suppliers will require her to agree to.
MacLeod estimates the stores will need more than $15.8 million in repairs before the end of 2026 to bring the leases into good standing. By 2027, Liu will need to spend another $5.7 million on repairs, not including taxes, permits or fees for expedited labour.
Over the next 10 years, he estimates Liu will be required to spend at least $43.1 million on the Cadillac Fairview leases alone.
He also took issue with her staffing estimations, which show she will need 1,800 employees to carry out her plan.
If all 1,800 are sales staff that would only leave 64 people on the floor of each of her 28 stores. Macleod said such staffing levels are "inadequate to support a countrywide chain" and "inconsistent with a retail location even a fraction of that size."
"With my decades of experience in commercial real estate, it is apparent to me and Cadillac Fairview that (Liu) will fail and again leave these stores vacant," he said.
This report by The Canadian Press was first published Aug. 9, 2025.
Tara Deschamps, The Canadian Press
