Hudson’s Bay Company and Penticton’s Cherry Lane Mall have reached a temporary rental agreement. (File photo)

Hudson’s Bay Company and Penticton’s Cherry Lane Mall have reached a temporary rental agreement. (File photo)

Hudson’s Bay reaches rent agreement with South Okanagan mall

Cherry Lane Mall previously filed a lawsuit to evict The Bay over unpaid rent

Hudson’s Bay Company has avoided eviction from Cherry Lane Shopping Centre for now, as the retail company has agreed to pay half of their rent each month in 2021.

The Bay is in a legal battle with Cherry Lane over unpaid rent since April 2020.

In a consent order filed Jan. 5 in B.C. Supreme Court, The Bay agreed to make half of their scheduled rent payments in 2021 as they become due, totalling $38,489.65 for the year.

The remaining half of the rent will be deposited into a trust account where it will be held by The Bay’s counsel.

Cherry Lane mall filed a lawsuit and served The Bay an eviction notice in November 2020, alleging that the retail store had not paid rent since March of that year.

According to the lawsuit, the shopping centre claimed it was owed $546,255 in unpaid rent since April.

The Bay responded by refusing to vacate the mall and filing a lawsuit of their own against Cherry Lane, alleging that the mall failed to provide a safe environment during the pandemic, resulting in a loss of customers and revenue.

Cherry Lane denied the tenant’s allegations, saying it adopted the required health and safety standards and has exceeded those requirements in many areas as well as going above and beyond to market the mall.

The Hudson’s Bay has been operating at Cherry Lane since 1996. The company’s annual rent totals $936,437, according to court documents.

An interlocutory injunction application between the two parties has been scheduled for March 2021 in Vancouver.

READ MORE: Hudson’s Bay sues Penticton mall over alleged lack of action amid pandemic

READ MORE: Cherry Lane Shopping Centre tries to evict The Bay, files lawsuit



jesse.day@pentictonwesternnews.com

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