"Fairweather Ltd., an affordable womenswear company, wants to take over the space once occupied by Hudson's Bay. It plans to revive the mostly-defunct, Quebec-based department store Les Ailes de la Mode under the name Ailes, according to court filings. Fairweather invests very little in its stores, with the result that they look and feel temporary and downmarket, lawyers representing Oxford Properties wrote in a Jan. 9 factum to the Ontario Superior Court of Justice, which goes on to call the company not creditworthy."
"Both sides are now awaiting the judge's decision in the case, which could shape the future of one of Canada's largest and best-known malls. Fairweather belongs to business mogul Isaac Benitah, whose family empire also runs the chains Wyrth, Bombay and Bowring, and International Clothiers. The Benitahs also bought the rights to the discount retailer Zellers last year. Oxford's legal team, headed by D.J. Miller, is arguing that an unsuitable tenant like Fairweather could lead to financial losses worth hundreds of millions."
"Fairweather, which operates over 100 stores across the country, did lease space at Yorkdale until 2020. But Oxford claims Fairweather doesn't have the expertise or competence to manage a 300,000 square foot retail space because most of its other locations are about three per cent of that size."
Oxford Properties has moved to block Fairweather from leasing the former Hudson's Bay space at Yorkdale, arguing the tenancy would dilute the mall's luxury reputation and risk substantial financial losses. Fairweather plans to revive Les Ailes de la Mode as Ailes and previously leased space at Yorkdale until 2020. Oxford alleges Fairweather invests little in store presentation, labels the company not creditworthy, and contends it lacks experience to manage a 300,000-square-foot department store since most of its locations are roughly three per cent of that size. Lawyers for the sublessor argue Fairweather is creditworthy and that Ailes would sell higher-end clothing. The case awaits a judge's decision that could influence Yorkdale's future tenant mix.
Read at www.cbc.ca
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