Advertisement

Rent dispute continues between the Bay, Penticton’s Cherry Lane Shopping Centre

Click to play video: 'Rent dispute continues between the Bay, Penticton’s Cherry Lane Shopping Centre' Rent dispute continues between the Bay, Penticton’s Cherry Lane Shopping Centre
WATCH: The Bay and Penticton's Cherry Lane Shopping Centre are still embroiled in a pandemic-related rent dispute. Jules Knox has the latest developments. – Feb 8, 2021

The Hudson’s Bay Company appears to have reached a tentative truce with Cherry Lane Shopping Centre after being threatened with eviction just before Christmas.

The Bay, which is on the hook for nearly $80,000 every month in rent, has filed court documents that suggest it has agreed to pay half of its ongoing rents to the shopping centre and half to a trust account for the courts to sort out later.

In a lawsuit, the Bay claims its landlord has failed to adopt proper pandemic safety measures or to make meaningful upgrades reducing the risk of virus transmission.

Read more: Penticton shopping centre and the Bay embroiled in pandemic-related rent dispute

Cherry Lane Shopping centre disputes the allegations, saying it meets and often exceeds all government health standards.

Story continues below advertisement

 

In court documents, the mall also counterclaims that the store failed to pay rent for at least nine months, piling up more than $700,000 in back rent and taxes.

The Bay says that if it closes, more than 60 local employees will be laid off in the midst of a sluggish economy.

Read more: Coronavirus — HBC sues landlord of Yorkdale, Square One alleging failure to run ‘first class’ malls

The case is expected to be back before the court sometime in March or shortly thereafter.

In the meantime, the Bay is expected to continue to pay half of its rent to the shopping centre and the other half in trust to its lawyer until the parties reach an agreement or the court makes an order.

Story continues below advertisement
Click to play video: 'Pandemic creates dispute over rent payments at Hudson’s Bay' Pandemic creates dispute over rent payments at Hudson’s Bay
Pandemic creates dispute over rent payments at Hudson’s Bay – Nov 25, 2020

Sponsored content