One of Business in Vancouver ‘s most influential business people, Ruby Liu, is undergoing treatment for cancer. She hopes to get 25 more long-term leases from the Hudson’s Bay Company for slightly over $69.1 million. Liu’s dream is to start a textile-based retail chain—she’s even calling it Liu’s—that would require an investment of $400 million. Her shaky, precarious financial future is fueled by ongoing legal fights. These issues are threatening the funding for her ambitious project.
Currently, Liu owns three shopping malls in British Columbia: Woodgrove Centre in Nanaimo, Mayfair Shopping Centre in Victoria, and Tsawwassen Mills in Delta. With all that in mind, it’s notable that though she owned all these properties, between the two years they averaged over $19 million in losses. This financial strain has cast doubt on her claims of having sufficient funds to support the establishment of her new retail chain.
Matthew Gottlieb, a lawyer for KingSett Capital, which is the Hudson’s Bay landlord, put forth a vigorous defense in court. He argued that Liu doesn’t have the necessary money to open her new retailer. To Liu’s credit, Meyer pointed out, he has not provided personal guarantees to back up the proposed $400 million investment. Liu’s lawyers admitted that the money needed for the project is “phantom,” making it hard for her to proceed with her plan to develop.
All Liu’s current fortune is mostly banked on three international companies. Unfortunately, none of these firms has committed to bankroll her new retail project. The lack of binding agreements has left many questioning her ability to fund the ambitious retail expansion. Gottlieb’s comments further suggest that if interest on loans made by Liu’s companies to the malls had been accounted for, the shopping centres would likely be insolvent.
The dispute shows how unstable business investments and expansions are in the retail sector. His goal is to open a department store, but that store will need to compete in an increasingly saturated market. Despite the continued legal wranglings, as both parties argue over Liu’s financial ability and future intentions to provide a transit plan, Liu stands victorious.
