[nightstreak]

After reading through this morning’s court documents, the picture is starting to come into focus.

Canadian Tire’s IP purchase has been approved by the court.

Nobody bid on Yorkdale, Square One, Scarborough Town Centre or Eaton Centre. The Monitor is going to try again to lure buyers. The court accepted another round to try to maximize recovery for creditors. Oxford and Cadillac Fairview aren’t impressed. They just want this over with so they can start leasing their spaces.

Ruby Liu’s stores are a bargain chasing play for a suburban department chain. All inexpensive leases. No downtown stores. Makes sense now that she got out bid for the IP even though Canadian Tire got it for cheap. Also makes sense that her and her team are marketing amateurs.

 

[lenaitch]

After reading through this morning’s court documents, the picture is starting to come into focus.

Canadian Tire’s IP purchase has been approved by the court.

Nobody bid on Yorkdale, Square One, Scarborough Town Centre or Eaton Centre. The Monitor is going to try again to lure buyers. The court accepted another round to try to maximize recovery for creditors. Oxford and Cadillac Fairview aren’t impressed. They just want this over with so they can start leasing their spaces.

Ruby Liu’s stores are a bargain chasing play for a suburban department chain. All inexpensive leases. No downtown stores. Makes sense now that she got out bid for the IP even though Canadian Tire got it for cheap. Also makes sense that her and her team are marketing amateurs.

One would think the landlords would be happy with the court to trying to find tenants on their behalf. Unless they have a large square footage client in the wings, which seems unlikely.

 

[nightstreak]

One would think the landlords would be happy with the court to trying to find tenants on their behalf. Unless they have a large square footage client in the wings, which seems unlikely.

Hudson’s Bay Queen Street’s terms help understand why CF is happy to get out of these leases.

The Bay had a 50+25 year lease on dirt cheap rent, they got the entire building including several floors of the office tower at Bay Street for a low yield department store until the year 2100.

CF gets the office tower back. Gets 4 floors of the heritage building to convert to office space for that tower. That alone will generate more revenue than what The Bay was paying and what a lease transfer tenant would inherit.

Eaton Centre, Yorkdale, Square One and STC will have little trouble finding tenants. It’s the suburban malls that are going to have trouble and may even close without an anchor tenant drawing traffic to their other stores.

 

[matrix]

Hudson’s Bay Queen Street’s terms help understand why CF is happy to get out of these leases.

The Bay had a 50+25 year lease on dirt cheap rent, they got the entire building including several floors of the office tower at Bay Street for a low yield department store until the year 2100.

CF gets the office tower back. Gets 4 floors of the heritage building to convert to office space for that tower. That alone will generate more revenue than what The Bay was paying and what a lease transfer tenant would inherit.

Eaton Centre, Yorkdale, Square One and STC will have little trouble finding tenants. It’s the suburban malls that are going to have trouble and may even close without an anchor tenant drawing traffic to their other stores.

The one suburban mall I can comment on is Oakville Place, which may benefit from the new Costco going up at RioCan Centre Burloak. Half of the plaza is set to be demolished to make way for it. RioCan has until September to try and relocate the businesses affected, which includes Old Navy and Structube among others. I'm sure those stores would love an anchor space at Oakville Place. Now, I'm not sure how long it will be until RioCan can even use that Bay space, but it helps that they have 61% ownership of the Oakville Place Bay property I would imagine. I'm personally excited because I want that mall to be useful to me again, other than the gym. And when Sears closed, they put belt to ass real fast to get the anchor space renovated.

As for Square One I haven't heard anything about TJX getting their hands on the lease for Winners/HomeSense yet (as I've mentioned here before). I really would like a list of what leases Liu bid on, it would make speculation about this stuff easier. Like I said, I would rather take a Winners than a Ruby Liu store, whatever that looks like. We'll be back here in 5 years if so.

 

[syn]

Retail Insider confirms what I'd been hearing that Ruby Liu didn't bid on downtown flagships.

The End of Hudson’s Bay Department Stores

Hudson’s Bay has permanently closed its department stores, ending 355 years of Canadian retail history and marking the collapse of Canada's last national department store chain.

retail-insider.com

There are a dozen other bidders so it's possible that someone else will get the Queen Street flagship, but I'm inclined to believe that Cadillac Fairview will be highly motivated to get out of that lease and will either buy it back or find clauses to deny any transfers. I'm eager to find out what they do with it though they might not be in much of a hurry because of the construction mess for the next few years, just as the newly renovated 2 Queen West hasn't found a tenant.

After reading through this morning’s court documents, the picture is starting to come into focus.

Canadian Tire’s IP purchase has been approved by the court.

Nobody bid on Yorkdale, Square One, Scarborough Town Centre or Eaton Centre. The Monitor is going to try again to lure buyers. The court accepted another round to try to maximize recovery for creditors. Oxford and Cadillac Fairview aren’t impressed. They just want this over with so they can start leasing their spaces.

Ruby Liu’s stores are a bargain chasing play for a suburban department chain. All inexpensive leases. No downtown stores. Makes sense now that she got out bid for the IP even though Canadian Tire got it for cheap. Also makes sense that her and her team are marketing amateurs.

That's disappointing, and largely puts to rest the idea that she wanted to save Hudson's Bay. I hope she's successful in her venture though, there's definitely potential despite the challenges.

If I were Canadian Tire I'd run the downtown store as a destination store Hudson's Bay - kind of like Harrod's - but sadly doesn't seem like anyone wants these spaces.

 

[Richard White]

That's disappointing, and largely puts to rest the idea that she wanted to save Hudson's Bay. I hope she's successful in her venture though, there's definitely potential despite the challenges.

If I were Canadian Tire I'd run the downtown store as a destination store Hudson's Bay - kind of like Harrod's - but sadly doesn't seem like anyone wants these spaces.

That wouldn't be such a bad idea actually.

The Bay would be better served as a destination store like Liberty, Fortnum and Mason or Harrods.

Perhaps an outlet in an airport or two for tourists but nothing grandiose.

 

[RGB_11]

I hope Eglinton Square can get someone to replace the Bay, but NOT International clothiers. THAT would RUIN the whole mall!!!

 

[Richard White]

I hope Eglinton Square can get someone to replace the Bay, but NOT International clothiers. THAT would RUIN the whole mall!!!

That mall is being torn down so I suspect they will either keep it vacant or bring in discount bobs treasure bucket for a few months.

 

[RGB_11]

That mall is being torn down so I suspect they will either keep it vacant or bring in discount bobs treasure bucket for a few months.

It looks like the plan is to leave Eglinton Square mall alone for a while, while concentrating on tearing down the Golden Mile buildings first. (No Frills, etc)
It doesn't surprise me for a second if the game plan is to move No Frills into the Bay space temporarily, while tearing down the current No Frills building, then move No Frills (or a Loblaws, if desired) back into the ground level of a condo, once built.
(*A No Frills and a Joe Fresh...)

 

[Richard White]

It looks like the plan is to leave Eglinton Square mall alone for a while, while concentrating on tearing down the Golden Mile buildings first. (No Frills, etc)
It doesn't surprise me for a second if the game plan is to move No Frills into the Bay space temporarily, while tearing down the current No Frills building, then move No Frills (or a Loblaws, if desired) back into the ground level of a condo, once built.
(*A No Frills and a Joe Fresh...)

There would likely be concerns raised by Metro which is on the other end of the mall

 

[RGB_11]

There would likely be concerns raised by Metro which is on the other end of the mall

Indeed, especially if they had any desire to become a Basics, but the mall might have prevented that (to help it stay "classy")
A Joe Fresh is too small to take the whole Bay space, & Metro doesn't own any clothing stores.
Walmart is already across the street and Canadian Tire is not far off either.
Metro would LOVE for No Frills to be closed with nowhere to go. (less competition)
They were happy to see Price Chopper go when it did...a slight drop in competition there.

 

[Northern Light]

It looks like the plan is to leave Eglinton Square mall alone for a while, while concentrating on tearing down the Golden Mile buildings first. (No Frills, etc)

Whose plan?

Not the City's, and the two sites are under different ownership.

I don't see any attempt here to permanently or medium term fill the space, that would impede redevelopment.

Could they lease the ground floor to someone who can manage quick n' dirty like Halloween Spirit? Sure...

It doesn't surprise me for a second if the game plan is to move No Frills into the Bay space temporarily, while tearing down the current No Frills building, then move No Frills (or a Loblaws, if desired) back into the ground level of a condo, once built.
(*A No Frills and a Joe Fresh...)

No Frills is not moving here, or closing anytime soon. A new location will be built in the current Golden Mile parking lot before the existing one is closed.

 

[matrix]

Got word again today about the plans for a Winners/HomeSense taking up part of the Square One Bay lease still being in the cards. Take this with a huge grain of salt of course, but it seems like that's still the plan. Again, not sure if Ruby bid on that lease but the fact it's still being discussed in the company at this point is a good sign. TJX setting up shop there would be a huge thing in and of itself, I've been told. Kind of easy when you're them, but they print money, and I'm sure Oxford wants that as well.

The Square One lease is the only location I've heard is up for grabs in terms of Winners/HomeSense, even after The Bay shut its doors, which is surprising. I've spoken here before that anything is possible with TJX as they'll have locations across the street from each other, so anything is possible, but that's all the info I heard as I work for them.

 

[RGB_11]

Got word again today about the plans for a Winners/HomeSense taking up part of the Square One Bay lease still being in the cards.

Winners/Homesense/Marshall's is already known for snatching up former Zellers leases that both Target and Walmart didn't want.
Good for them if they see it possible to snatch up Bay leases now also.
They snatched up the former Zellers store space @ Lawrence square (or whatever it's called these days.)
Didn't they also snatch up the upper level of a Sears lease @ Fairview mall (with T&T on the bottom)
They seem to like former department store leases...

 

[matrix]

Winners/Homesense/Marshall's is already known for snatching up former Zellers leases that both Target and Walmart didn't want.
Good for them if they see it possible to snatch up Bay leases now also.
They snatched up the former Zellers store space @ Lawrence square (or whatever it's called these days.)
Didn't they also snatch up the upper level of a Sears lease @ Fairview mall (with T&T on the bottom)
They seem to like former department store leases...

Yeah, they have been increasingly snatching up more mall leases. They also snatched up Hillcrest with a rare Marshalls/HomeSense when Target left. I've been told that historically they prefer freehold/strip mall stores but the mall leases have been bringing just as much money, so it's whatever works at this point.

The reason they've been filling up these old department store boxes is because it's guaranteed money for them and the landlord. The business model encourages you to go to every single store to hunt for clothes so it doesn't matter if there's more than one store in a certain range. And that's a very unique thing to have in retail.