TORONTO – Oxford Properties, the landlord of Yorkdale Shopping Centre, has successfully blocked the discount department store Les Ailes de la Mode from taking over the former Hudson's Bay store within the upscale Toronto shopping destination. In a ruling issued on Monday by Judge Jessica Kimmel, the court highlighted the lack of commercial viability surrounding the tenant arrangement, which ultimately led to the decision against the lease transfer.
Les Ailes de la Mode's planned takeover was part of a broader strategy proposed by FTI Consulting Canada Inc., which has been appointed to oversee a joint venture involving the Hudson's Bay Company (HBC) and RioCan Real Estate Investment Trust. The joint venture is managing 12 properties, including the prominent three-floor space at Yorkdale, following HBC's filing for creditor protection in March 2025 and subsequent receivership in June.
In her ruling, Judge Kimmel raised concerns about the financial health of Les Ailes de la Mode, which is owned by Fairweather Ltd. Oxford Properties contended that the retailer does not fit the luxury identity of Yorkdale, claiming its stores are perceived as “temporary and down-market.” Oxford vice-president Nadia Corrado expressed significant reservations about the impact of introducing Fairweather as a tenant, stating that it would undermine decades of investment and planning by the company and negatively affect existing tenants at the mall.
Following the court's decision, Oxford spokesperson Daniel O'Donnell conveyed the company's satisfaction with the outcome. Meanwhile, representatives from Les Ailes de la Mode and FTI Consulting declined to make public comments, citing the limitations imposed by their roles during the ongoing legal proceedings. RioCan has not issued any immediate statements regarding the ruling.
Founded in the 1990s, Les Ailes de la Mode operates a small number of shops focused on selling heavily discounted clothing. The chain is owned by Isaac Benitah, who is also associated with other retail brands such as Wyrth, Bombay, Bowring, and International Clothiers. In recent developments, Benitah and his family acquired the rights to the Zellers trademarks, aiming to revive the brand. In court filings, RioCan argued that Fairweather possesses the necessary expertise and operational capability required to manage the Ailes store in Yorkdale, asserting that it would represent a creditworthy tenant.
Despite the court's rejection of the proposed lease transfer, RioCan has revealed plans for Les Ailes de la Mode to launch two additional department stores in former HBC locations located in Quebec City and Montreal in the first half of 2026. According to RioCan, the envisioned store at Yorkdale would operate as a mid- to high-end department store, featuring an assortment of both branded and private-label products, predominantly showcasing higher-quality merchandise compared to other offerings in Fairweather's retail portfolio.
The prospective product range for the new store at Yorkdale includes men's, women's, and children's apparel, footwear, housewares, home decor, accessories, and confectionary items. Suppliers like Reebok, Chaps, Billabong and Laura Ashley have reportedly committed to providing merchandise to Les Ailes de la Mode, highlighting its potential to diversify and elevate its product offerings.
