Judge Blocks Les Ailes de la Mode’s Move to Former La Baie Space
Oxford Properties has successfully blocked the entry of discount retailer Les Ailes de la Mode into the former La Baie space at Yorkdale Shopping Centre in Toronto. A ruling by Judge Jessica Kimmel, announced on Monday, thwarted the plan for Les Ailes de la Mode to take over the locale. The judge noted a significant lack of commercial viability in the arrangement, making it difficult for the court to approve the transfer of the lease.
Background of the Lease Dispute
This leasing initiative was originally suggested last year by FTI Consulting Canada. FTI is currently overseeing a joint venture involving Hudson’s Bay Company and RioCan Real Estate Investment Trust. This venture consists of twelve properties, including the three-story former La Baie location at Yorkdale. The proposed lease transfer was viewed as a means to mitigate the impact of Hudson’s Bay Company’s bankruptcy filing last March, which led to the joint venture entering receivership in June.
Impact of Bankruptcy and Receivership
Receivership allows a neutral third party, such as FTI, to manage troubled businesses and recover debts owed to creditors. RioCan holds a $75 million mortgage on the Hudson’s Bay lease and faces significant financial repercussions if a new tenant is not secured by August. If unsuccessful, the property might revert to Oxford Properties, which intends to manage it at its discretion.
Opposition from Oxford Properties
Oxford Properties has expressed firm opposition to the proposed agreement between FTI and RioCan. The company argues that Les Ailes de la Mode is unsuitable for its upscale shopping environment. Nadia Corrado, Oxford’s Vice President, emphasized that the retailer is “not financially healthy” and has stores that project a temporary, low-quality image, contrasting sharply with Yorkdale’s luxurious atmosphere.
- Corrado’s sworn statement highlighted that occupying such a prestigious location for years could undermine decades of careful investment by Oxford.
- She claimed it could also negatively impact current tenants of Yorkdale.
Following the ruling, Oxford spokesman Daniel O’Donnell expressed satisfaction with the outcome. The representatives of Les Ailes de la Mode declined to comment, while FTI stated that it could not issue media statements due to its role as a court-appointed administrator. RioCan has not responded to requests for comment.
Les Ailes de la Mode: A Brief Overview
Founded in the 1990s, Les Ailes de la Mode is a Canadian department store currently operating a few outlets that offer discounted clothing. It is owned by businessman Isaac Benitah through Fairweather. The Benitah family has experience running retail chains including Wyrth, Bombay, and Bowring, as well as International Clothiers.
Future Plans for Les Ailes de la Mode
In recent months, the Benitahs acquired the rights to the Zellers brand from Hudson’s Bay and are in the process of reviving it. Documents filed by RioCan revealed that Les Ailes de la Mode is scheduled to open two new locations in former Hudson’s Bay spaces in Quebec and Montreal in the first half of 2026.
Billed as a mid to upscale department store, the Yorkdale location was planned to feature a blend of branded and private label products, offering higher quality merchandise than other Fairweather stores. Expected product categories include men’s, women’s, and children’s clothing, shoes, home goods, and accessories.
- Potential suppliers for the new store include:
- Reebok
- Chaps
- Billabong
- Laura Ashley
The ongoing legal disputes and strategic decisions surrounding the lease of the former La Baie space highlight a critical moment for both the involved retailers and Yorkdale Shopping Centre.
