Source: Eduardo Lima/The Globe and Mail
Apple is apparently threatening to bail on its new retail location in Toronto, Canada.
As reported by The Globe and Mail, the company has reportedly threatened to end its plans to locate its new Apple Store in The One, a new residential skyscraper that is in the process of being built in the city. Apple says that it is exercising its right to abandon the plan due to delays in the building’s construction.
But the tech giant has told Mizrahi Developments it may exercise an option in the lease agreement that allegedly allows the retailer to exit without penalties if the developer misses certain deadlines, according to court documents filed by Mizrahi in Ontario’s Superior Court of Justice on Oct. 5, 2021.
Mizrahi says it has not missed deadlines and Apple no longer has the option to terminate the lease. The developer is seeking a court order to stop the retailer from leaving. In its court submission, Mizrahi said it will “suffer irreparable harm from losing a world-class tenant that was intended to be an anchor tenant for a world-class property, which is a loss that cannot be compensated in damages.”
The developer of the building says that they were allowed to delay the delivery of the project due to forces outside of its control like the pandemic and a local plumber’s strike. Mizrahi claims that Apple responded by “saying it would exercise its rights to terminate the lease and provided a list of items it thought Mizrahi could not deliver.” According to the developer, the area that Apple was planned to reside in has been custom-built for the company in mind.
The tech company’s lease was for more than 15,000 square feet, including more than 9,000 square feet on the ground floor. As part of the agreement, Mizrahi agreed to pay Apple’s architect to cover the cost of designing the store, which as of mid-October amounted to $6.24-million, Mizrahi said in its court submissions.
Apple’s space is surrounded by seven layers of glass with no breaks. That was made up of 34 panels custom fabricated from integrated units at an average cost of $400,000 per panel, in the signature and iconic style of flagship Apple stores around the world, Mizrahi stated in its court filings.
If Mizrahi loses the court battle, the developer will be forced to find another resident for its new retail space. It’s currently unclear exactly where Apple would plan to open a store instead (or if it would still do so).
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