Amazon sued over unoccupied stores
Amazon is reportedly being sued by two property firms over alleged unpaid rent and breach of contract, Yahoo! Finance reports.
The company had originally planned to open multiple Amazon Fresh locations in Washington state and Pennsylvania, but has failed to move forward with building and development of said facilities, which remain unoccupied.
In March, Pennsylvania-based Federal Realty Investment Trust, which owns the Willow Grove Shopping Center where an Amazon Fresh location was planned, sued the firm for $180,000 in “unpaid rent”.
Amazon’s lawyers argue that the landlord did not satisfy conditions specified in the lease, and therefore rent “was not due yet”.
On May 15, The Landing filed a lawsuit for breach of contract, with the retail space owner stating that Amazon had backed out of the lease agreement.
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However, spokespeople and court documents have said that Amazon was unable to secure necessary permits and approvals to begin development for the grocery stores.
Representatives for The Landing have expressed disbelief for these arguments and questioned Amazon’s intention to pursue grocery business, as several other leases have also been terminated.
Six planned Amazon Fresh stores in the Minneapolis-St. Paul area and one outside Detroit have been listed for sublease through local real estate agents, according to Axios Twin Cities and Crain's Detroit Business.
Additionally, Amazon reportedly has terminated the lease on a second metro Detroit site.