Yorkdale Shopping Centre’s landlord is opposing a move by Fairweather, stating that it could harm the mall’s upscale image. Fairweather Ltd., a budget-friendly women’s apparel brand, aims to replace the former Hudson’s Bay space with a revived version of the Quebec-based department store Les Ailes de la Mode, branded as “Ailes.”
In court documents, Oxford Properties’ attorneys criticized Fairweather for its minimal investment in store aesthetics, labeling it as lacking in quality and not financially stable. Despite attempts to contact Fairweather for comment, lawyers representing the leasing company argue that Fairweather is a credible tenant that would offer high-end clothing in the mall.
The dispute now awaits a court ruling that could impact the future of the renowned Canadian mall. Fairweather, owned by business magnate Isaac Benitah, operates numerous stores nationwide and had previously leased space at Yorkdale until 2020. Oxford Properties claims that Fairweather lacks the necessary expertise to manage a large retail space like the one at Yorkdale.
The legal battle stems from Hudson’s Bay’s creditor protection filing, leading to the appointment of FTI Consulting as the receiver for the joint venture with RioCan Real Estate Investment Trust. FTI selected Fairweather as the new tenant for the former Bay location, a decision supported by RioCan. Fairweather is seen as a suitable replacement, offering retail experience and planning to position the Ailes brand at a higher price point.
Oxford’s legal team asserts that having Fairweather as a tenant could result in substantial financial losses for the mall. They argue that the rent agreement proposed for Fairweather is significantly lower than what Hudson’s Bay had paid, posing a risk to the mall’s overall performance and value. Oxford has been actively reducing the presence of Fairweather’s brands in its shopping centers.
If Fairweather secures the sublease, it plans to invest minimally in improving the space, a stark contrast to the significant investments made by other mall tenants. Retail analyst Bruce Winder highlights the potential impact of Fairweather’s presence on Yorkdale’s reputation, emphasizing the importance of maintaining brand image and pricing standards.
The legal battle at Yorkdale bears similarities to the failed bid by Ruby Liu to take over Hudson’s Bay leases for a new department store bearing her name, a move that landlords, including Oxford Properties, deemed insufficient and inexperienced. Winder suggests that the outcome of the Ruby Liu case could influence the current dispute.