The centre’s owners, JSC Properties Ltd, brought proceedings against Tessuti (Ireland) Ltd and Tessuti Ltd. The Tessuti brand in the UK was acquired by Michael Ashley’s Frasers Group in 2022.
JSC is asking the court to order the specific performance of a 10-year lease agreement last January with Tessuti (Ireland) to keep a unit in the shopping centre open for trade.
Today’s News in 90 seconds – 23rd July 2024
It also seeks declarations that the defendants are required to pay rent and associated charges on the premises under the lease, and that Tessuti Ltd is obliged to perform the lease as guarantor for Tussuti (Ireland).
It seeks judgment for some €1.72m, primarily comprising rent due.
On Monday, Mr Justice Denis McDonald agreed to an application from JSC to admit the case to the Commercial Court.
The defendants opposed the application, claiming it had sought to engage with JSC with a view to mediating the dispute.
Mr Justice McDonald said he was in favour of the parties engaging. However, the case came within the rules for admission to the commercial list and he was prepared to admit it and adjourn the matter to October.
In an affidavit, Shane McCrory, director of Garvagh Property Management, which is JSC’s appointed property and asset manager, said under the lease agreement Tessuti agreed to fit out the unit for immediate occupation.
He claimed there was a failure to start the fit-out works and the store did not open.
The sale of Tessuti UK in 2022 to the Frasers Group meant JSC has been dealing with different parties over the last year, he said.
Following numerous meetings and correspondence with representatives of the defendants during 2023, Mr McCrory said on June 21, solicitors for the defendants informed JSC that the potential for opening a Frasers Group brand in the premises was “still being considered, seriously and in good faith”.
However, three days later Companies Office accounts filed by Tessuti (Ireland) said that after the Frasers Group acquired the company, it decided not to open the Tessuti store in Ireland.
Mr McCrory said this came as a surprise to JSC. It now seeks to have the issue resolved quickly because an empty anchor-tenant unit causes ongoing loss.
