US discount retailer Target is facing an unexpected complication in its Canadian expansion plans after specialty fashion and accessories retailer Fairweather filed a lawsuit claiming it owns the right to use the Target name in Canada.

The trade mark infringement documents were filed on Monday (17 January) at the Federal Court in Toronto.

According to a report in The Canadian Press, Fairweather wants up to $250m in damages, as well as an injunction to stop the US chain from using the Target name in Canada. Fairweather has been operating a Toronto clothing store under the name ‘Target Apparel’ since 2005.

Minneapolis-based Target Corp last week revealed plans to make its first move into a new market with a CAD1.825bn (US$1.83bn) swoop on Canadian discount chain Zellers.

The deal will see the US retail giant take control of up to 220 stores operated by Zellers, a subsidiary of Hudson's Bay Co, with up to 150 of these stores being converted to the Target nameplate by 2014.