Retail Therapy Denied: Court Dismisses Motion to Assign Hudson’s Bay Leases

Jessica Cameron, Tiffany Bennett and Sabiha Meghji of Fasken examine the Ontario Superior Court’s refusal to allow Hudson’s Bay to assign 25 department store leases under section 11.3 of the CCAA after finding the proposed assignee’s business plan, experience and financial capacity fell far short of the reasonableness standard, the monitor did not support the transactions, the leases carried exceptionally long remaining terms and the liquidation context did not justify compelling landlords to accept a new counterparty.

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