A notable Canadian fashion brand hoping to open a department store at Yorkdale Shopping Centre has met pushback from the mall landlord, which says the retailer’s “value-oriented” brand image will harm the mall’s reputation as a “cohesive luxury retail destination.”
Oxford Properties is fighting a sublease transaction in court that it says “a competitor landlord,” RioCan, forced on it, requiring Oxford to accept clothing retailer Fairweather as a new tenant in the former Hudson’s Bay flagship space at Yorkdale.
The planned Yorkdale store under the “Ailes” banner is a revival of Fairweather’s once-venerated but now-defunct department store, Les Ailes de la Mode, which exited the Canadian market in 2017. Fairweather originally acquired the Quebec-based chain in 2005.
Fairweather is owned by the family of Issac Benitah, which has been in the Canadian retail landscape for 50 years, building a portfolio that also includes menswear retailers International Clothiers and Stockhomme, the discount outlet Designer Depot, and the newly acquired Zellers. Benitah purchased the intellectual property of discount retailer Zellers for $100,000 over the summer, which made its debut as part of the brand’s national comeback at an Edmonton mall in October.
Oxford said that Fairweather’s current operations at its two other malls appear “temporary and downmarket,” which do not align with Yorkdale’s position as a “leading luxury retail destination,” according to a court document.
“Fairweather, and Mr. Benitah’s other retail banners, are firmly positioned in the budget and value-oriented segment of the retail market,” said Nadia Corrado, a vice-president of Oxford, in a court document. “They do not reflect the scale, aesthetic, or market positioning expected of an anchor tenant at Yorkdale.”
Fairweather is intending to replace Hudson’s Bay as the new subtenant for the 301,000-square-foot space at the upscale Toronto mall. When contacted by the Star, it declined to comment on the ongoing court matter.
The transaction has put Oxford in conflict with another real estate giant, RioCan, which formed a joint venture with Hudson’s Bay in 2015 for 12 properties, including the Yorkdale lease.
The RioCan-HBC joint venture was placed in receivership after Hudson’s Bay wound up its operations. The court-appointed receiver, FTL Consulting, said in a court filing that it asked Oxford to buy back the lease, but the landlord refused. As a result, FTL Consulting applied to the Ontario Superior Court in October to approve a new sublease with Fairweather, which it described as “the highest and best offer.”
Oxford said FTL Consulting did not seek its consent for the sublease and has filed an opposing motion to block the deal. The court will hear both motions on Dec. 16.
If the deal falls through, the joint venture’s creditors — including RBC, owed about $75 million, and guarantor RioCan — stand to lose big, according to the receiver in court filings.
Hudson’s Bay occupied the largest anchor space at Yorkdale, the only shopping centre in Canada to surpass $2 billion in annual sales, according to Oxford. In 2025, Hudson’s Bay was required to pay about $2.8 million in annual rent. However, under the proposed sublease, Fairweather would pay far less — a gross rent of either $1 million a year or 12 per cent of its sales at Yorkdale, whichever is higher — until May 2029.
In an email to the Star, Oxford said the attempt by RioCan to force it to accept this transaction for “a fraction of the already below-market rent previously paid by HBC” does not make commercial or common sense.
“The creation of this dynamic appears to be an attempt by RioCan to shift its own obligations onto Oxford regarding the $75-million guarantee that it gave to its lender for the Yorkdale HBC premises,” Oxford said.
RioCan did not respond to the Star’s request to comment by the time of publication.
FTL Consulting stated in the court document that the new “Ailes” department store is required to open by May next year and will sell apparel, footwear, accessories, houseware and home decor.
Fairweather has been active in the Canadian retail market for 25 years and is “sufficiently experienced and competent” in operating a department store, the receiver said.
“In the receiver’s view, the Fairweather transaction is the best path forward for the Yorkdale property. It is the only option currently available that avoids a surrender of the head lease and loss of its substantial value,” said FTL Consulting in a court document.
Oxford said in a court document that it has not received any business plan or operational details from Fairweather, raising concerns about the retailer’s ability to meet the obligations under the lease.
“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,” Oxford’s vice-president Corrado said.
