A Chinese billionaire in British Columbia has resorted to social networks to announce his plans to buy dozens of Hudson’s Bay locations after seeing the “Canadians feel sad” for the collapse of the retail giant.
The businessman Weihong Liu is the president of the Central Walk Board, an retail investment company that has three shopping centers in BC
Liu has shared a series of videos on the Chinese social networks platform Rednote, saying that he wants to “restore the bay to his glory.”
“Knowing that the bay, this national brand that takes the story of Canada, will collapse, I cannot bear and look, you must do everything possible to do something, to save it, so that the Canadian spirit continues,” Liu said in Mandarin. “Let the young generation in Canada fall in love with the bay again.”
Liu established its business plans to buy many of the stores on a board in one of their videos, saying that the bay has hundreds of years of history and does not want to see it collapse.
“So, the Canadians need to unite, we need to revitalize retail trade and solve employment, create miracles.”
The videos show their tour of Bay’s locations, from Toronto to Calgary, along with the BC -based real estate agent, Linda Qin.
The roots of Hudson’s Bay date back to 1670 as a skins trade company with its first department store in Winnipeg in 1881, and then expand throughout the country.
The bay will liquidate all but six of its 80 stores, as well as its three Saks Fifth Avenue stores and 13 Saks of the fifth location in Canada that it owns through a license agreement.
Facing more than one billion dollars of debt, the Hudson’s Bay company has begun its liquidation process. An Ontario court gave the centenary retailer his blessing to sell remaining shares in almost all his 96 stores. But as Liam Britten reports, bargain hunters may need to wait to find the best offers.
Liu said in a video posted last month that he would present his proposal for the assets of the Bay in a matter of days.
The binding offers for the company’s assets or investments in the business must be presented on April 30, while those who wish the leases have to make an offer before May 1.
Liu could not be contacted for an interview, while Qin told the Canadian press in a text message on Tuesday that they will have more ads.
HBC spokeswoman Tiffany Bourré He declined to comment on the offer.
Alvarez & Marsal, a third designated by the court, supervised the process to download the Hudson’s Bay and Saks process to guide Hudson Bay through the protection of creditors, and the Real Estate Corridor Oberfeld Snowcap Inc.
Neither of them responded to a request for comments asking if they had received an expression of interest from Liu.
A second process to find buyers or investors for the other assets of the Bay, which may include rights of its famous registered brand or even its art, is being directed by Álvarez & Marsal and reflect advisors, financial advisor of Hudson’s Bay.
Adam Zalev, reflect managing director, said in an email: “It is not appropriate for us to comment while the sales process is ongoing.”
Uphill battle
Retail analysts say this will be a uphill battle for Liu.
The founder and editor of the privileged information Craig Patterson has seen one of Liu online videos, and said that “it could be someone who wants good attention on social networks.”
Patterson said it would be difficult to revive stores, since investors first need to find suppliers willing to sell them products, and in this case, merchants would prefer to have cash in delivery, instead of receiving payment later.
He said that for the chain to be viable as a supplier retailer, Liu will need to have at least 15 locations.
“And then it would be necessary, obviously, money to renew the stores and have the product,” said Patterson.
He pointed out that one of Liu’s properties, Woodgrove Shopping Center in Nanaimo, has been included in the sale.
Colliers Canada is promoting the center on its website.
Vancouver’s retail sector faces another success with the closure of all Hudson’s Bay locations out of Ontario and Quebec. As Sohrab Sandhu reports, city officials say they would like to see that the massive space in the center retains its patrimonial value.
JC Williams Group’s retail strategist Lisa Hutcheson said that obtaining suppliers for any potential inverter would be difficult.
“I think that is a great risk at this time is that these suppliers are really fighting to be paid,” said Hutcheson, adding that restoring these relationships would require “much confidence.”
Reviewing the commercial strategy is also important, he said, since buying the store and keeping it the same will only make the store “another redundant brand at this time.”
“I don’t think it’s just one, I’m going to buy this and keep it open. It will definitely still have to be a job to understand its market relevance, although we have only had this person public about their plans,” said Hutcheson.
