In 1997, seeing the success of The Bay in higher-end retailing, Eaton's lured their chief executive George Kosich over to try to duplicate the strategy. The Hudson's Bay Company filed a lawsuit saying that Kosich had violated his employment contract. Eaton's had also sued HBC for poaching several of its executives. Aside from that controversy, the new retailing strategy was not only unsuccessful, it also gave rival Sears Canada the opportunity to move up to the market segment long dominated by Eaton's. Kosich resigned in 1998 and was replaced by chairman Brent Ballantyne.