Ruby Liu’s Ambitious Retail Plan Thwarted by Court Ruling

B.C. billionaire Ruby Liu has seen her ambitious plan to acquire and revitalize former Hudson’s Bay stores thwarted by a recent ruling from the Ontario Superior Court. The court determined that Liu’s company, Central Walk, did not meet the necessary financial and operational standards to take over 25 of the 28 retail leases it sought. This decision effectively halts Liu’s vision of creating a new department-store chain under her name, a project valued at over $120 million (approximately £64.4 million).

Liu, known as Liu Weihong, has built her wealth through substantial real estate investments in China before expanding her business interests into Canada. As chairwoman of Central Walk, she oversees notable shopping destinations, including Tsawwassen Mills in Delta, Woodgrove Centre in Nanaimo, and Mayfair Shopping Centre in Victoria. Her focus has been on transforming traditional malls into vibrant lifestyle hubs that blend shopping, entertainment, and leisure.

Liu’s foray into the retail sector was perceived as a natural progression. She envisioned establishing a chain of department stores that could rejuvenate the retail landscape in the wake of the pandemic. Following the Hudson’s Bay Company‘s entry into creditor protection in early 2025, Liu positioned herself as a potential savior, proposing to acquire 28 leases and rebrand them as ‘Ruby Liu’ stores. This strategy aimed to introduce interactive shopping experiences inspired by successful Asian retail models, combining luxury products with dining options, family attractions, and event spaces.

Initially, retail analysts highlighted the potential of Liu’s plan, describing it as audacious yet transformative amidst a sector struggling with declining foot traffic and increased online competition. Although the court initially approved the transfer of three locations within malls already owned by Central Walk, the broader expansion faced significant pushback.

Major landlords, including Cadillac Fairview, raised concerns regarding Liu’s financial transparency and the commercial viability of her proposal. In court documents, one landlord indicated that her plans “defied commercial common sense,” suggesting that Central Walk might exhaust its capital before launching a single store. Additional objections focused on the potential disruption to existing mall operations and the risk of diminishing property values.

On October 24, 2023, the Ontario Superior Court ruled in favor of the landlords, blocking the majority of Liu’s planned lease transfers. According to CityNews, the court noted that Liu’s business “is not an established operator of major department stores” and lacked evidence of sufficient funding to sustain a nationwide retail operation. Reports also pointed out that several of Liu’s properties in British Columbia had recently experienced declining revenues, further eroding investor confidence.

While Liu retains control of three approved Hudson’s Bay locations in British Columbia, which are expected to reopen later this year under her brand, the court’s ruling raises significant questions about her long-term ambitions in retail and the fate of Canada’s vacant department-store spaces. Observers in the industry suggest that this case underscores the broader challenges faced by traditional retail across North America.

Ruby Liu’s high-stakes gamble serves as a cautionary tale illustrating that even billionaires can confront substantial obstacles when attempting to rejuvenate a struggling retail sector. As the landscape continues to evolve, the future of department stores in Canada remains uncertain.