Retail landlords are using the courts to stop stores from closing — and they’re winning

Judges recently ruled that Teavana stores and a Whole Foods in Washington must stay open

TRD New York /
Dec.December 12, 2017 11:30 AM

From top: a Teavana store and Whole Foods Union Square

Retailers might want to think twice before closing a struggling store, as they could end up with a lawsuit on their hands.

As shopping centers continue to struggle, landlords have started pushing back against stores that shut down by filing and winning court cases to prevent them from doing so, especially in instances where their closing would cause the landlord to take a huge financial hit, according to Bisnow.

Whole Foods recently tried to shutter a store in Bellevue, Washington, for instance, but a judge has since ordered them to reopen. The grocery store was just two years into a 10-year lease requiring it to carry on uninterrupted business, and the landlord claimed to have been notified just minutes before the liquidation sale began.

A judge has also temporarily barred Starbucks from closing 77 of its Teavana stores in Simon Property Group malls after determining that Starbucks could handle a financial hit better than Simon. [Bisnow]Eddie Small


Related Articles

arrow_forward_ios
Joe Moinian and 123 Linden Blvd. (Moinian Group)

These were the top outer borough loans in July

These were the top outer borough loans in July
Clipper Equity's David Bistricer (REIT)

David Bistricer’s Clipper Realty reports record Q2 profit

David Bistricer’s Clipper Realty reports record Q2 profit
Vornado CEO Steven Roth and a rendering of the Farley Post Office building (Getty, iStock, SOM)

Vornado will install facial recognition tech in all its buildings

Vornado will install facial recognition tech in all its buildings
Mall of San Juan (Taubman)

Taubman’s $475M Mall of San Juan gets “knocked out” after reopening

Taubman’s $475M Mall of San Juan gets “knocked out” after reopening
Clockwise:  CBRE's Michael Remer, Richard Hodos and Joel Stephen with the Wizarding World Building at 935 Broadway (Images via CBRE)

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Right to left: 831, 835 and 837 Madison Avenue (Google Maps)

“The ’57 Chevy in that old lady’s garage”: Madison Avenue buildings up for sale in litmus test for retail real estate

“The ’57 Chevy in that old lady’s garage”: Madison Avenue buildings up for sale in litmus test for retail real estate
Lord & Taylor and Men’s Wearhouse are just the latest big retail chains to file for bankruptcy (Lord and Taylor by Bruce Bennett/Getty Images; Men's Warehouse by Scott Olson/Getty Images)

Lord & Taylor, Men’s Wearhouse file for bankruptcy

Lord & Taylor, Men’s Wearhouse file for bankruptcy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...