Woodbine Mall owner, Fantasy Fair operator shift into CCAA process

Woodbine Mall Holdings Inc. and Fantasy Fair and Kids Village Inc. obtained protection under the Companies' Creditors Arrangement Act on April 17, 2026, nearly 3 years after the businesses and 4 affiliated entities were first placed into receivership. The application was brought by secured lender Romspen Investment Corporation, owed nearly $500 million. The restructuring is being run as a hybrid CCAA & receivership process.

At the centre of the case is Woodbine Mall, one of Toronto’s established regional retail properties, and Fantasy Fair, the indoor amusement attraction operating at the site. Since its appointment in 2023, the receiver has continued operating Woodbine Mall and Fantasy Fair with the assistance of Avison Young Real Estate Management Services, LP as property manager under a management services agreement.

The receiver entered into a listing agreement with Colliers Macaulay Nicolls Inc. in March 2024 and launched two extensive marketing and sale campaigns. The first process produced multiple conditional bids, but none were accepted because they were materially below the Romspen debt.

A major obstacle to the sale process was Hudson’s Bay’s lease rights. The retailer held lengthy renewal options that could have extended until 2085 and could be used as leverage to obstruct demolition of the existing buildings and redevelopment of the mall, significantly impacting marketability. After Hudson’s Bay commenced its own CCAA proceedings, the receiver pulled back the sale campaign pending the lease monetization or disclaimer process. Once the lease was disclaimed effective July 24, 2025, the receiver restarted the sales effort. That renewed process also drew conditional offers, but none were accepted because pricing again fell short of the Romspen debt.

As a result, Romspen concluded Woodbine Mall’s value would be better realized after a market recovery and future residential redevelopment, prompting extensive negotiations with EY that led to a proposed Subscription Agreement. The transaction would see Romspen-controlled RIC (Woodbine) Inc. acquire the business through a reverse vesting structure featuring a substantial credit bid. The hearing to approve the transaction is currently scheduled for April 27.

EY, already the receiver, is the monitor. Counsel is Dickinson Wright for Romspen, Blaney McMurtry for EY, and Himelfarb Proszanski for the companies.