Victoria’s Secret’s landlord has accused the company of prematurely ending itsstay at the Westfield World Trade Center Shopping Center, located in downtown Manhattan, in alleged violation of a lease agreement.
In a complaint filed in late May in New York state court, Westfield made claims for more than $30 million to retailer alleging that it had refused to pay rents and backed out part way through from a 12-year lease that was meant to end in 2029. As per Women’s Wear Daily, the suit seeks more than $4.2 million in unpaid rent and roughly $28 million in damages for the alleged violation of the lease.
The dispute centers on a point of contention facing mall tenants and their landlords around the country as retailers have closed thousands of stores during the pandemic. When major tenants leave a mall during a crisis, what happens to those left behind?
Lease agreements sometimes address these scenarios through what are known as co-tenancy clauses. Such provisions may allow tenants to reduce their rent or leave their premises during their lease term, if they can show other important tenants have already left.
Victoria’s Secret allegedly invoked such co-tenancy failures and sought to terminate its lease. But Westfield argues in its suit that the retailer had not shown evidence for its claim about such co-tenancy issues.











