RioCan outlines property exposure as it calls HBC creditor filing 'disappointing'

HBC filing 'disappointing'

Photo: The Canadian Press

People cycle past the Hudson's Bay department store in downtown Montreal on Monday, March 17, 2025. 

RioCan Real Estate Investment Trust says Hudson's Bay creditor protection filing is "disappointing" as it calls for fair and balanced restructuring terms.

The investment trust is heavily exposed to Hudson's Bay financial woes because the two companies co-own 12 store properties including some of the most prominent downtown locations.

Hudson's Bay is awaiting court permission to start liquidating all of its stores after it filed for creditor protection on March 7.

The retailer has asked to put a stay on lease payments to the joint venture, something RioCan opposes.

RioCan says in a news release that it plans to use all available business and legal avenues, as well as its leasing and development capabilities, to get the best outcome for the properties.

RioCan chief executive Jonathan Gitlin says in a statement that the locations include prime real estate that have value either as retail centres or redevelopment opportunities.

"Our team has a proven track record of finding solutions for vacant space and will work to protect the value of the real estate in the JV," Gitlin said. "This process will take time, expertise and collaboration among all stakeholders."