I would say that this definitely falls within the realm of an "unsubstantiated rumour"
The vultures are certainly circling Highfield Square, but what this means for the future of the Bay is uncertain.
If Highfield is chosen for the new events centre, the Bay could close for good (which is a possibility since it is an underperforming store in a small market and the Bay has already closed their west end store in Halifax), but I would like to think that they would just move elsewhere. The big question is where? The only possibility would be if WalMart left Champlain to build a new superstore elsewhere in the city, but apparently WalMart likes it at Champlain.
There are retail areas in development on Mapleton Road, in Findlay Park and possibly off Harrisville Blvd, but these all are big box type developments and not traditional shopping malls. I don't think the Bay would find these appealing.
I wouldn't write the Bay off yet, but the future of this retailing icon in the city seems a little ominous. It would be nice to think that the Bay could carry on in it's current location and be incorporated in some way with the new events centre. We shall see.