HBC alleges Oxford Properties in breach of agreements, Oxford says claim without merit
HBC sues landlord of Yorkdale, Square One claiming failure to run 'first class' malls
- Thread starter Charlemagne
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That click baity title *sighs
HBC claims they stopped paying rent as Oxford has not made the malls attractive to shoppers post-Covid IN QUEBEC!
HBC HAS paid Yorkdale + Square One and is asking for disgorgement; the RETURN of rent paid to them
This article makes it sound like they have not paid rent in Ontario (they have, they are asking that it be returned to them)
Two Hudson's Bay Co. landlords are suing the retailer for unpaid rent, alleging the iconic department store that anchors shopping malls across Canada hasn't paid its bills at multiple locations since April.
The lawsuits, filed in Quebec Superior Court by Cominar Real Estate Investment Trust and Oxford Properties Group and its co-owners, are seeking so-called safeguard orders compelling HBC to pay rent.
The companies say in court documents that HBC owes more than $3.5 million in rent and other fees at five Quebec shopping malls, an amount that continues to climb by more than half a million dollars each month.
In an affidavit filed in response, Ian Putnam, president and chief executive officer of HBC Properties and Investment, said the company has been trying to reach a mutually acceptable solution with the landlords that recognizes COVID-19's “dramatic impact” on retail.
"HBC still hopes to arrive at a reasonable resolution," he said in court documents filed Wednesday.
"But their demand that HBC pay the entirety of the rent ignores the fundamental change in the nature of these properties," Putnam said, adding that they are no longer the "first class" malls HBC bargained for.
Oxford Properties said the ongoing loss of rent from an anchor tenant could be crippling for its shopping centres. In court documents, the company said HBC continues to pay rent "under protest"
"HBC's aggregate indebtedness to the landlords of the Oxford Shopping Centres ... is extremely large and growing at an alarming rate," Oxford Properties said in court documents.
Oxford Properties, which is the real estate subsidiary of OMERS, added that an inability to collect the amount owing from HBC would cause "irreparable harm."
Meanwhile, Cominar is threatening Hudson's Bay with eviction from its three Quebec properties in addition to seeking unpaid rent.
Cominar claims in court documents that HBC owes $603,169 in rent at the Rockland Shopping Centre, $662,490 at the Champlain Mall and $144,393 at the Centre Laval.
Oxford Properties claims the retailer owes $1.4 million in overdue rent at Les Galeries de la Capitale and $875,680 at Les Promenades Gatineau.
The landlord also alleges that HBC has made it clear it has "no intention of paying any rent in the foreseeable future."
James Tate, a retail market analyst retained by HBC legal counsel, said in an affidavit that the landlord "is not delivering a first-class suburban regional centre in terms of customer traffic and opportunity for HBC."
He said Oxford Properties has not consistently provided the elements required for a "first class suburban regional shopping centre," including a place to shop, eat and socialize that is perceived as clean and safe.
HBC claims they stopped paying rent as Oxford has not made the malls attractive to shoppers post-Covid IN QUEBEC!
HBC HAS paid Yorkdale + Square One and is asking for disgorgement; the RETURN of rent paid to them
This article makes it sound like they have not paid rent in Ontario (they have, they are asking that it be returned to them)
Two Hudson's Bay Co. landlords are suing the retailer for unpaid rent, alleging the iconic department store that anchors shopping malls across Canada hasn't paid its bills at multiple locations since April.
The lawsuits, filed in Quebec Superior Court by Cominar Real Estate Investment Trust and Oxford Properties Group and its co-owners, are seeking so-called safeguard orders compelling HBC to pay rent.
The companies say in court documents that HBC owes more than $3.5 million in rent and other fees at five Quebec shopping malls, an amount that continues to climb by more than half a million dollars each month.
In an affidavit filed in response, Ian Putnam, president and chief executive officer of HBC Properties and Investment, said the company has been trying to reach a mutually acceptable solution with the landlords that recognizes COVID-19's “dramatic impact” on retail.
"HBC still hopes to arrive at a reasonable resolution," he said in court documents filed Wednesday.
"But their demand that HBC pay the entirety of the rent ignores the fundamental change in the nature of these properties," Putnam said, adding that they are no longer the "first class" malls HBC bargained for.
Oxford Properties said the ongoing loss of rent from an anchor tenant could be crippling for its shopping centres. In court documents, the company said HBC continues to pay rent "under protest"
"HBC's aggregate indebtedness to the landlords of the Oxford Shopping Centres ... is extremely large and growing at an alarming rate," Oxford Properties said in court documents.
Oxford Properties, which is the real estate subsidiary of OMERS, added that an inability to collect the amount owing from HBC would cause "irreparable harm."
Meanwhile, Cominar is threatening Hudson's Bay with eviction from its three Quebec properties in addition to seeking unpaid rent.
Cominar claims in court documents that HBC owes $603,169 in rent at the Rockland Shopping Centre, $662,490 at the Champlain Mall and $144,393 at the Centre Laval.
Oxford Properties claims the retailer owes $1.4 million in overdue rent at Les Galeries de la Capitale and $875,680 at Les Promenades Gatineau.
The landlord also alleges that HBC has made it clear it has "no intention of paying any rent in the foreseeable future."
James Tate, a retail market analyst retained by HBC legal counsel, said in an affidavit that the landlord "is not delivering a first-class suburban regional centre in terms of customer traffic and opportunity for HBC."
He said Oxford Properties has not consistently provided the elements required for a "first class suburban regional shopping centre," including a place to shop, eat and socialize that is perceived as clean and safe.
