Fairweather too ‘downmarket,’ unsuitable to take over HBC space in Yorkdale: Oxford

Real estate firm Oxford is fighting to keep Fairweather Ltd. from reviving the defunct Les Ailes de la Mode department store at Yorkdale Shopping Centre. THE CANADIAN PRESS/HO-Oxford Properties

TORONTO — Mall landlord Oxford is fighting another real estate firm to keep Fairweather Ltd. from reviving the defunct Les Ailes de la Mode department store at Yorkdale Shopping Centre in Toronto.

In new court documents, Oxford argues Fairweather is not suitable for the former Hudson’s Bay space measuring more than 300,000 square feet because most of its other locations are about three per cent of that size.

It also alleges Fairweather is “not a financially healthy retailer” and its stores “look and feel temporary and downmarket,” which is the antithesis of the luxury vibe Yorkdale projects.

“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,” said Nadia Corrado, a vice-president with Oxford, in a Thursday 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.”

Fairweather is a womenswear brand that was created in 1867. It is now owned by business mogul Isaac Benitah. He and his family members have run home goods chains Wyrth, Bombay and Bowring as well as apparel retailer International Clothiers.

They were also behind Les Ailes de la Mode, a Canadian department store that faltered in the early aughts but now exists as a small handful of shops selling deeply discounted clothing. Earlier this year, they bought the rights to Zellers, a discount retailer previously run by HBC, and have started reviving it through an Edmonton store.

Citing ongoing court proceedings, Fairweather declined to comment Monday on Oxford’s opposition to the brand moving into Yorkdale, a prestige mall in northern Toronto with 67 luxury retailers and more than $2 billion in annual sales.

The property became available earlier this year when severe debt forced Hudson’s Bay to file for creditor protection and then close all of its stores.

HBC leased a three-floor property from Oxford through a joint venture HBC had with RioCan Real Estate Investment Trust.

The joint venture held 12 leases when HBC collapsed in March. Months later, the venture was placed into receivership, a legal process where a neutral third party is appointed by a court to take control of a distressed company in order to recover amounts owing to creditors.

FTI Consulting was appointed as the receiver and soon after began working to find retailers to buy HBC’s leases.

Fairweather eventually emerged as a taker and garnered FTI and RioCan’s support.

But Oxford now alleges Fairweather is only being put forward as a tenant because RioCan wants Oxford to buy out the lease instead. In that scenario, Oxford would get to control who moves in and RioCan could put the money toward a $75 million loan it has on the property.

The move to force Oxford to accept Fairweather for “a fraction of the already below-market rent previously paid by HBC, defies both commercial and common sense,” Oxford’s senior vice-president of corporate affairs Daniel O’Donnell said in a statement to The Canadian Press.

“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,” he wrote in an email.

Asked about Oxford’s objections, RioCan said, “Fairweather, along with its affiliates and principals, brings substantial retail operational experience and expertise.”

“The proposed transaction fully aligns with the terms of the head lease governing this space,” senior vice-president of people and brand Terri Andrianopoulos wrote in an email.

FTI did not responded to a request for comment.

However, FTI noted in a court filing that Oxford was asked on multiple occasions if it would be interested in acquiring the Yorkdale lease and declined. Thus, a new subtenant “is the only remaining option available to preserve the value” of the lease, FTI said in its submission.

The fate of the Yorkdale property is of such concern to Oxford because HBC was an anchor tenant. That means it held one of the largest, highest traffic areas in the mall and thus had lower rents and longer lease terms.

Initially, HBC was only paying $500,000 in annual rent plus an occupancy payment of $166,000, utility charges and other taxes and license fees, Oxford says. A 2014 amendment allowed the landlord to change the fees so by 2025, HBC was required to pay about $2.8 million per year for 300,870 square feet.

The next two largest tenants, department stores Simons and Holt Renfrew, occupy spaces about one-third of the size.

While Fairweather has leased other Oxford properties for the brand as well as Wyrth and International Clothiers, Oxford said it’s been steadily reducing the presence of all Fairweather brands within Yorkdale for the past 15 years, and within the remainder of its malls over the last five years.

This report by The Canadian Press was first published Nov. 17, 2025.