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Canadian fashion powerhouse YM Inc. is set to expand its footprint after reaching a deal to acquire five former Saks OFF 5TH locations from the Hudson\u2019s Bay Company (HBC). The agreements, disclosed in recent court filings, come as the storied retailer navigates a turbulent winding down under the Companies\u2019 Creditors Arrangement Act (CCAA).<\/p>\n
The deal, valued at $5.03 million, will see YM take over spaces in some of Canada\u2019s most prominent outlet centres, subject to court approval and landlord consent. This transaction underscores YM\u2019s aggressive growth strategy and highlights the growing appetite for prime retail real estate as HBC seeks to monetize its assets.<\/p>\n
Where the New Stores Will Open<\/strong><\/h2>\nAccording to legal documents filed with the Ontario Superior Court of Justice, YM has secured the following leases:<\/p>\n
\n- Vaughan Mills near Toronto \u2013 approximately 35,000 square feet<\/li>\n
- Tanger Outlets Ottawa in Kanata \u2013 28,357 square feet<\/li>\n
- Outlet Collection Winnipeg \u2013 32,191 square feet<\/li>\n
- CrossIron Mills near Calgary \u2013 approximately 30,000 square feet<\/li>\n
- Toronto Premium Outlets in Halton Hills \u2013 approximately 25,000 square feet<\/li>\n<\/ul>\n
These locations are situated in some of the country\u2019s busiest outlet centres, offering YM immediate access to high-traffic shopping destinations. The stores were formerly occupied by Saks OFF 5TH, which shuttered its Canadian operations last month. Saks OFF 5TH stores in Canada were licensed under the Hudson\u2019s Bay Company. <\/p>\n
YM\u2019s ambitions extended beyond these five locations. The retailer had sought to acquire Saks OFF 5TH leases at Pickering Town Centre in Pickering and Skyview Power Centre in Edmonton, and a 175,000 square foot Hudson\u2019s Bay lease at Midtown Plaza in Saskatoon for an additional $1 million. However, landlord approvals for those properties were not secured, a recurring obstacle in the ongoing restructuring process.<\/p>\n
The inability to close these additional sites underscores a broader challenge facing bidders and HBC: the need for landlord consent in lease assignments. Many property owners remain cautious about incoming tenants, particularly amid uncertainty around the future of Canadian retail and the viability of new concepts.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2024\/10\/IMG_8206-1200x675.jpg\")
Inside the former Urban Planet store at 157 Bloor Street West in Toronto on Friday, October 11, 2024. Photo: Craig Patterson <\/figcaption><\/figure>\nA Broader Disposition Strategy<\/strong><\/h2>\nThe YM transaction is part of a larger strategy by HBC to dispose of its real estate interests and generate liquidity for stakeholders. HBC has closed all 80 Hudson\u2019s Bay department stores, 13 Saks OFF 5TH stores, and three Saks Fifth Avenue stores in Canada following its entry into creditor protection earlier this year.<\/p>\n
The company owes nearly $1 billion to lenders and trade creditors, making asset sales a critical component of its restructuring plan. According to Alvarez & Marsal, the court-appointed Monitor, a total of 39 properties were offered for sale earlier this year, attracting a dozen bidders.<\/p>\n
Among the most high-profile bidders is B.C. billionaire Ruby Liu, whose name has dominated headlines in recent weeks.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/IMG_4239.jpg\")
Weihong (Ruby) Liu in front of the Court House at 330 University Avenue in Toronto on June 23, 2025. Photo: Craig Patterson <\/figcaption><\/figure>\nThe Ruby Liu Saga: A Bidder Under Fire<\/strong><\/h2>\nRuby Liu initially made waves by acquiring three former Hudson\u2019s Bay leases at malls she owns \u2014 Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria, and Tsawwassen Mills in South Delta \u2014 for $6 million. Those transfers were approved by the court last month, returning the spaces to Liu-controlled properties.<\/p>\n
However, her ambitions did not stop there. HBC selected Liu as the preferred bidder for 25 additional leases across Canada, positioning her to launch a new department store concept bearing her name. Liu has described her vision as a family-oriented shopping destination blending retail, dining, and entertainment.<\/p>\n
Despite these aspirations, landlords have fiercely opposed the proposed transaction. Court filings reveal concerns that Liu has not yet submitted a credible or detailed business plan. The situation escalated during a recent hearing when Liu appeared without legal counsel or supporting documentation, prompting Justice Peter Osborne to adjourn proceedings.<\/p>\n
\u201cI not only urge but recommend in the strongest terms that you retain legal representation,\u201d Justice Osborne stated, rescheduling the hearing for August 28. Until then, the fate of the 25 leases remains uncertain, creating heightened anxiety among creditors eager for resolution.<\/p>\n
Mounting Costs and Tight Timelines<\/strong><\/h2>\nDelays in approving major lease transactions are proving costly. The Monitor estimates that maintaining HBC\u2019s dark stores costs at least $4.7 million monthly in rent, property taxes, utilities, and related expenses. These carrying costs erode potential recoveries for creditors with every passing day.<\/p>\n
In its latest motion record, HBC requested an extension of creditor protection from July 31 to October 31, citing the need for additional time to finalize the YM and IC transactions, secure approval of the Liu deal, and auction valuable corporate art holdings.<\/p>\n
\u201cThe requested stay extension is necessary to preserve value for stakeholders and avoid a disorderly liquidation,\u201d HBC\u2019s counsel at Stikeman Elliott LLP argued in court filings.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/03\/image-2025-03-26T195139.638-1200x904.png\")
Former Hudson\u2019s Bay store at Metropolis at Metrotown in Burnaby, BC. Photo: Stephen A. Braverman via X\/formerly Twitter<\/figcaption><\/figure>\nOther Lease Sales Underway<\/strong><\/h2>\nWhile YM\u2019s deal and Liu\u2019s proposal dominate headlines, other transactions have also emerged. Ivanhoe Realties Inc., an affiliate of major landlord Ivanhoe Cambridge, has agreed to pay $20,000 for the lease of a 132,000-square-foot former Hudson\u2019s Bay store at Metropolis at Metrotown in Burnaby. Given Ivanhoe Cambridge\u2019s ownership of Metrotown, the deal effectively returns the property to its landlord.<\/p>\n
This nominal purchase price highlights a key reality: in many cases, landlords prefer to regain control of their spaces rather than allow uncertain operators to take over, particularly when anchor tenant stability influences overall mall performance.<\/p>\n
YM\u2019s expansion signals confidence in the outlet and value-driven retail segment, even as department store operators struggle to adapt to shifting consumer behaviours. By acquiring these former Saks OFF 5TH sites, YM gains immediate access to prime outlet locations, a format aligned with its portfolio of accessible fashion brands such as Urban Planet, Bluenotes, West49, and Suzy Shier.<\/p>\n
More from Retail Insider: <\/h2>\n<\/div>\n
These locations are situated in some of the country\u2019s busiest outlet centres, offering YM immediate access to high-traffic shopping destinations. The stores were formerly occupied by Saks OFF 5TH, which shuttered its Canadian operations last month. Saks OFF 5TH stores in Canada were licensed under the Hudson\u2019s Bay Company. <\/p>\n
YM\u2019s ambitions extended beyond these five locations. The retailer had sought to acquire Saks OFF 5TH leases at Pickering Town Centre in Pickering and Skyview Power Centre in Edmonton, and a 175,000 square foot Hudson\u2019s Bay lease at Midtown Plaza in Saskatoon for an additional $1 million. However, landlord approvals for those properties were not secured, a recurring obstacle in the ongoing restructuring process.<\/p>\n
The inability to close these additional sites underscores a broader challenge facing bidders and HBC: the need for landlord consent in lease assignments. Many property owners remain cautious about incoming tenants, particularly amid uncertainty around the future of Canadian retail and the viability of new concepts.<\/p>\n The YM transaction is part of a larger strategy by HBC to dispose of its real estate interests and generate liquidity for stakeholders. HBC has closed all 80 Hudson\u2019s Bay department stores, 13 Saks OFF 5TH stores, and three Saks Fifth Avenue stores in Canada following its entry into creditor protection earlier this year.<\/p>\n The company owes nearly $1 billion to lenders and trade creditors, making asset sales a critical component of its restructuring plan. According to Alvarez & Marsal, the court-appointed Monitor, a total of 39 properties were offered for sale earlier this year, attracting a dozen bidders.<\/p>\n Among the most high-profile bidders is B.C. billionaire Ruby Liu, whose name has dominated headlines in recent weeks.<\/p>\n Ruby Liu initially made waves by acquiring three former Hudson\u2019s Bay leases at malls she owns \u2014 Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria, and Tsawwassen Mills in South Delta \u2014 for $6 million. Those transfers were approved by the court last month, returning the spaces to Liu-controlled properties.<\/p>\n However, her ambitions did not stop there. HBC selected Liu as the preferred bidder for 25 additional leases across Canada, positioning her to launch a new department store concept bearing her name. Liu has described her vision as a family-oriented shopping destination blending retail, dining, and entertainment.<\/p>\n Despite these aspirations, landlords have fiercely opposed the proposed transaction. Court filings reveal concerns that Liu has not yet submitted a credible or detailed business plan. The situation escalated during a recent hearing when Liu appeared without legal counsel or supporting documentation, prompting Justice Peter Osborne to adjourn proceedings.<\/p>\n \u201cI not only urge but recommend in the strongest terms that you retain legal representation,\u201d Justice Osborne stated, rescheduling the hearing for August 28. Until then, the fate of the 25 leases remains uncertain, creating heightened anxiety among creditors eager for resolution.<\/p>\n Delays in approving major lease transactions are proving costly. The Monitor estimates that maintaining HBC\u2019s dark stores costs at least $4.7 million monthly in rent, property taxes, utilities, and related expenses. These carrying costs erode potential recoveries for creditors with every passing day.<\/p>\n In its latest motion record, HBC requested an extension of creditor protection from July 31 to October 31, citing the need for additional time to finalize the YM and IC transactions, secure approval of the Liu deal, and auction valuable corporate art holdings.<\/p>\n \u201cThe requested stay extension is necessary to preserve value for stakeholders and avoid a disorderly liquidation,\u201d HBC\u2019s counsel at Stikeman Elliott LLP argued in court filings.<\/p>\n While YM\u2019s deal and Liu\u2019s proposal dominate headlines, other transactions have also emerged. Ivanhoe Realties Inc., an affiliate of major landlord Ivanhoe Cambridge, has agreed to pay $20,000 for the lease of a 132,000-square-foot former Hudson\u2019s Bay store at Metropolis at Metrotown in Burnaby. Given Ivanhoe Cambridge\u2019s ownership of Metrotown, the deal effectively returns the property to its landlord.<\/p>\n This nominal purchase price highlights a key reality: in many cases, landlords prefer to regain control of their spaces rather than allow uncertain operators to take over, particularly when anchor tenant stability influences overall mall performance.<\/p>\n YM\u2019s expansion signals confidence in the outlet and value-driven retail segment, even as department store operators struggle to adapt to shifting consumer behaviours. By acquiring these former Saks OFF 5TH sites, YM gains immediate access to prime outlet locations, a format aligned with its portfolio of accessible fashion brands such as Urban Planet, Bluenotes, West49, and Suzy Shier.<\/p>\nA Broader Disposition Strategy<\/strong><\/h2>\n
The Ruby Liu Saga: A Bidder Under Fire<\/strong><\/h2>\n
Mounting Costs and Tight Timelines<\/strong><\/h2>\n
Other Lease Sales Underway<\/strong><\/h2>\n
More from Retail Insider: <\/h2>\n<\/div>\n