A fierce legal battle is unfolding over a prime piece of retail real estate at Yorkdale Shopping Centre in Toronto. The dispute centers on whether a revived department store, Ailes, can take over the massive space formerly occupied by Hudson’s Bay.
Fairweather Ltd., the company behind Ailes, envisions a three-floor department store bringing back the spirit of its former Quebec-based brand, Les Ailes de la Mode. The original Les Ailes de la Mode closed its doors in 2017, but Fairweather continues to operate smaller clothing outlets in Montreal.
Oxford Properties, the owner of Yorkdale, is aggressively fighting the move, arguing that Ailes would fundamentally damage the mall’s carefully cultivated luxury image. Their legal filings paint a stark contrast between Yorkdale’s high-end tenants and what they perceive as Fairweather’s downmarket approach.
Oxford’s lawyers contend that Fairweather invests minimally in its stores, resulting in a temporary and less sophisticated aesthetic. They claim the addition of Ailes could lead to hundreds of millions of dollars in losses for the mall over the coming decades.
Fairweather, now owned by business mogul Isaac Benitah, insists Ailes will offer a higher price point and a curated selection of brands. They’ve already secured commitments from names like Reebok, Steve Madden, and DKNY, aiming to establish a traditional department store experience.
Benitah’s business portfolio extends beyond Fairweather, encompassing International Clothiers, Wyrth, Bombay and Bowring, and notably, the rights to the Zellers brand – signaling ambitious plans for a retail resurgence.
Oxford Properties has invested over $1 billion in the last 15 years to position Yorkdale as Canada’s premier shopping destination. They argue that allowing Ailes to become an anchor tenant would jeopardize this hard-won status and unravel years of careful development.
The core of Oxford’s argument rests on the idea that Yorkdale’s success hinges on a consistent, high-quality experience. They believe Fairweather simply doesn’t meet the standards of their existing tenants, lacking the brand reputation and operational excellence they demand.
Now, the fate of Ailes at Yorkdale rests with the Ontario Superior Court. The ruling will determine whether Fairweather can realize its vision for a revitalized department store or if Oxford Properties will successfully defend its exclusive retail environment.
The court will weigh Oxford’s concerns about brand image and potential financial losses against Fairweather’s plans for a modern department store offering a range of well-known brands. The decision promises to have significant implications for the future of retail at Yorkdale and beyond.
