Dispute over unpaid rent by HBC
At the heart of the court proceedings is a dispute over unpaid rent to RioCan-Hudson’s Bay JV, a joint venture between HBC and RioCan Real Estate Investment Trust. The retailer operates 12 stores in properties leased from the JV, but company lawyers argue that its current cash flow does not allow for full rent payments, says the Star. Meanwhile, RioCan-Hudson’s Bay JV is pushing for immediate payment, with sources indicating that HBC has continued paying other landlords despite its financial struggles.
The proposed liquidation would see HBC shutter its operations entirely, including 80 Bay stores, three Saks Fifth Avenue locations, and 13 Saks Off 5th outlets. The process,…
