Two
The lawsuits, filed in
The companies say in court documents that HBC owes more than
In an affidavit filed in response,
"HBC still hopes to arrive at a reasonable resolution," he said in court documents filed Wednesday.
"But their demand that HBC pay the entirety of the rent ignores the fundamental change in the nature of these properties," Putnam said, adding that they are no longer the "first class" malls HBC bargained for.
The legal wrangling highlights the challenges facing both commercial landlords and retailers as foot traffic in brick-and-mortar stores continues to lag after widespread closures last spring.
With the second wave of the pandemic intensifying, the coming months could see more disputes emerge as shoppers turn to e-commerce instead of local shopping malls ahead of the busiest shopping season of the year.
In court documents, the company said that while HBC continues to pay rent "under protest" at three of its shopping centres, it's withholding rent at eight other locations.
The company's portfolio of malls includes the
"HBC’s aggregate indebtedness to the landlords of the Oxford Shopping Centres ... is extremely large and growing at an alarming rate,"
Meanwhile, Cominar is threatening
Cominar claims in court documents that HBC owes
The landlord also alleges that HBC has made it clear it has "no intention of paying any rent in the foreseeable future."
"It appears that HBC’s true intention is to take advantage of the current challenging times to occupy and carry on business from the leased premises rent-free as long as possible,"
"HBC is attempting to use the pandemic as a pretext to unjustly enrich itself at the expense of the landlord."
He said HBC's continued refusal to pay any rent — despite being open for business — pushed the company to pursue legal action.
But in his affidavit, Putnam said the allegation that HBC has simply refused to pay rent while also refusing to engage in good faith negotiations is "completely false."
"HBC is committed to arriving at a reasonable resolution with Oxford," he said. "It is not HBC's intent to continue operating its stores without paying any rent."
Part of the issue for HBC is the current state of the malls it anchors.
He said
"The case could set a precedent that's damaging to the retail sector," she said. “It’s unfortunate it had to come to this. Having huge anchor stores disappear from malls is a recipe for disaster."
Citing shifting consumer behaviour, HBC said earlier this month it would permanently close its
This report by
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