Oxford Properties, a mall landlord, successfully prevented the discount department store Les Ailes de la Mode from occupying the former Hudson’s Bay store at Toronto’s Yorkdale Shopping Centre. The decision was made by Judge Jessica Kimmel on Monday, who expressed concerns about the commercial viability of the arrangement proposed by Fairweather Ltd., the owner of Les Ailes de la Mode.
Last year, FTI Consulting Canada Inc. suggested transferring the Yorkdale Hudson’s Bay Company (HBC) lease to Fairweather Ltd. as part of a joint venture with RioCan Real Estate Investment Trust involving 12 properties, including the former HBC space at Yorkdale. This move aimed to mitigate the financial impact of HBC’s creditor protection filing in March, which led to the joint venture being placed in receivership in June.
Receivership, a legal process where a neutral third party takes control of a distressed company to recover debts owed to creditors, was initiated with FTI overseeing the process. RioCan, holding a $75-million mortgage on the HBC lease, faces potential financial consequences if a new tenant is not secured by August, allowing Oxford Properties to reclaim the property.
Oxford Properties opposed the plan to bring Les Ailes de la Mode to Yorkdale, citing concerns about the retailer’s financial health and the mismatch with the luxury image of the mall. The company argued that accommodating Fairweather would undermine the investment and appeal of Yorkdale, impacting existing tenants negatively.
Following the court ruling, an Oxford spokesperson expressed satisfaction with the outcome. Les Ailes de la Mode’s owners declined to comment, while FTI refrained from providing statements to the media due to its role as a court officer. RioCan did not respond immediately to requests for comment.
Les Ailes de la Mode, a Canadian department store owned by Fairweather, is associated with business mogul Isaac Benitah and operates several discount clothing shops. Despite RioCan’s assertions that Fairweather was capable of operating the store at Yorkdale, concerns were raised about the retailer’s plans and the impact on the mall’s upscale image.
Fairweather, under the Benitah family, has acquired the Zellers trademarks from HBC and plans to open department stores in Quebec City and Montreal in 2026. The proposed Les Ailes de la Mode store at Yorkdale was intended to offer a range of high-quality merchandise, attracting renowned suppliers like Reebok, Chaps, Billabong, and Laura Ashley.
RioCan highlighted that the envisioned store would feature men’s, women’s, and children’s apparel, footwear, housewares, home decor, accessories, and confectionary, distinguishing itself from Fairweather Group’s more budget-focused banners.