Oxford Properties has secured a court victory to stop an unsuitable tenant from occupying the former Hudson’s Bay store at Toronto’s Yorkdale Shopping Centre. Judge Jessica Kimmel issued the ruling on Monday, preventing Les Ailes de la Mode, owned by Fairweather Ltd., from assuming the lease.
“There is an apparent lack of commercial soundness to this arrangement that, at the very least, makes it difficult for the court to afford deference to those wanting to sell the Yorkdale Hudson’s Bay Company lease to Fairweather Ltd.,” Judge Kimmel stated in her decision.
Background of the Lease Dispute
FTI Consulting Canada Inc., appointed to manage a joint venture between Hudson’s Bay Company and RioCan Real Estate Investment Trust across 12 properties, proposed the lease transfer last year. This followed Hudson’s Bay filing for creditor protection in March and the joint venture entering receivership in June.
RioCan holds a $75-million mortgage on the Hudson’s Bay lease. Failure to secure a new tenant by August could return the three-floor space at Yorkdale to Oxford Properties, exposing RioCan to substantial losses.
Oxford’s Strong Opposition
Oxford Properties contested the plan, arguing that Les Ailes de la Mode fails to align with Yorkdale’s luxury positioning. The company described the retailer as “not a financially healthy retailer” with stores that “look and feel temporary and down-market.”
“I cannot overemphasize how inappropriate and detrimental it would be to have Fairweather occupy the most prominent premises at Yorkdale for even one year, much less the next 50 years as contemplated by the proposed Fairweather transaction,” Nadia Corrado, vice president at Oxford, wrote in a November affidavit. “This would have the effect of compromising decades of significant investment and planning by Oxford and create a cascading negative effect for Yorkdale’s existing tenants.”
Following the ruling, Oxford spokesperson Daniel O’Donnell expressed satisfaction with the outcome. Owners of Les Ailes de la Mode offered no comment, FTI declined statements as a court-appointed officer, and RioCan has not responded.
Profile of Les Ailes de la Mode
Les Ailes de la Mode, a Canadian department store launched in the 1990s, now operates a limited number of locations offering heavily discounted clothing. Isaac Benitah owns the brand through Fairweather Ltd. His family has managed home goods chains like Wyrth, Bombay, and Bowring, as well as apparel retailer International Clothiers. Recently, they acquired rights to the defunct Zellers trademarks from Hudson’s Bay and relaunched the brand.
RioCan asserted that Fairweather possesses the expertise and financial stability to operate a store at Yorkdale. Court documents reveal plans for two new Les Ailes de la Mode department stores in former Hudson’s Bay sites in Quebec City and Montreal during the first half of 2026.
The proposed Yorkdale outlet aimed to feature mid- to high-end offerings, including branded and private-label items in men’s, women’s, and children’s apparel, footwear, housewares, home decor, accessories, and confectionery. Committed suppliers included Reebok, Chaps, Billabong, and Laura Ashley, positioning it above the Fairweather Group’s typical value-focused brands.
