Mall property owner Oxford Properties has successfully halted an attempt by Les Ailes de la Mode, a discount department store, to occupy the former Hudson’s Bay space at Toronto’s Yorkdale Shopping Centre. Judge Jessica Kimmel’s ruling on Monday prohibited Fairweather Ltd., the owner of Les Ailes de la Mode, from taking over the lease.
The proposal for the lease transfer was presented by FTI Consulting Canada Inc. last year, which was managing a joint venture between HBC and RioCan Real Estate Investment Trust for several properties, including the Yorkdale space. The plan aimed to mitigate the financial impact following HBC’s creditor protection filing in March, leading to the joint venture going into receivership in June.
Receivership is a legal process where a neutral party, in this case, FTI, takes control of a financially distressed company to settle debts. RioCan holds a $75 million mortgage on the HBC lease and faces potential financial repercussions if a new tenant is not secured by August, allowing Oxford Properties to reclaim the space.
Oxford Properties contested the proposal, arguing that Les Ailes de la Mode did not align with the luxury image of Yorkdale. The company expressed concerns about the financial stability and appearance of the retailer, stating that it would not fit the upscale ambiance of the mall.
Following the court ruling, Oxford spokesperson Daniel O’Donnell expressed satisfaction with the decision. Fairweather Ltd. declined to comment, while FTI refrained from providing statements due to its role as a court-appointed officer. RioCan did not respond immediately to requests for comments.
Les Ailes de la Mode, founded in the 1990s, operates several discounted clothing stores under Fairweather. The company is owned by Isaac Benitah, who also oversees other retail chains and recently acquired the Zellers trademarks. Fairweather’s plans for Les Ailes de la Mode include opening stores in Quebec City and Montreal in 2026.
RioCan defended Fairweather’s capabilities to operate the store at Yorkdale, emphasizing its expertise and commercial arrangements. The proposed department store was positioned as mid- to high-end, offering a range of merchandise from renowned brands and private labels. Suppliers like Reebok, Chaps, Billabong, and Laura Ashley were committed to providing goods for the store.