The iconic sports department store Lillywhites has refused to pay rent despite reopening, according to lawyers representing its landlord.
The department store, owned by business tycoon Mike Ashley is locked in a legal dispute with landlord Criterion Buildings over more than £3m in unpaid rent.
The landlord filed a claim at the High Court in October for £3,271,852, saying the retailer hadn’t paid rent due in March, June and September for the premises in central London.
Lawyers for Lillywhites argue in legal papers that the premises were closed in March “pursuant to government instruction” and “could not be used fully for the permitted use under the lease, namely as a retail shop and department store”.
They say that payment is only due when the building “could be used in full for its intended purpose”.
In papers filed last week, lawyers for the landlord said that the store has been open for months and is obliged to pay rent.
“The defendant reopened the premises on or around 15 June 2020 when the [coronavirus] regulations ceased to apply to them,” says the document, which was filed on 11 December.
“The defendant has enjoyed and continues to enjoy exclusive occupation and/or possession of the premises.
“In the circumstances, whether or not the premises could be used fully for the permitted use under the lease is immaterial to the obligation to pay rents,” says the filing.
The document says that the next rent payment is due on 25 December and they “reserve the right” to sue the store for it, if it goes unpaid.
