MIAMI – Breach of contract allegations have been lodged against fashion store Citi Trends Inc. as a plaza says it owes more than $100,000 according to a lawsuit filed in U.S. District Court for the Southern District of Florida on May 31.
West Town Plaza Associates Ltd. accused Citi Trends of breaking the parties’ lease agreement. Their business relationship began Jan. 10, 2007 when they entered a five-year lease agreement from May 1, 2007 until April 30, 2012. The defendant signed on to pay at least the minimum rent amount plus a percentage rent amount in the agreement. On top of the minimum and percentage rent amounts, Citi Trends also said it would pay its “pro rata share of taxes, insurance and common area maintenance” to the plaza. The agreement also stated Citi Trends could sign on to four more five-year options if it wanted to extend the lease term.
The defendant took up this offer and renewed its agreement in 2012 and 2017. The latter term extended from May 1, 2017 to April 30, 2022.
The business relationship soured when the defendant allegedly did not pay the minimum rent and percentage rent based on the agreement on March 1, 2017.
“As of this complaint, Citi Trends has failed to pay any sums to landlord as required by the lease since March 1, 2017…,” the plaintiff stated in the document. Attorneys for West Town Plaza allege the defendant refuses to follow the terms of the lease agreement and now owes more than $100,000 in back rent. It pointed out Citi Trends still operates in the leased property and attempts to collect have failed.
The plaintiff sued on one count of breach of contract and stated Citi Trends owes rent, real estate taxes, insurance costs and common area costs based on the terms of the agreement. It asked the court for owed rent plus, attorneys’ fees and legal costs, and any other awards the court deems suitable.