by J. Cliff McKinney II |
“Everyone knows that we are living in tough economic times. Many retail businesses are looking for ways to cut costs. In some cases, national, regional and local retailers may decide to close some stores to focus resources on more profitable units. However, many retailers lease space that is subject to long-term leases. Rather than break the lease, these retailers may make the economic decision to keep paying the rent on a closed, or “dark,” store. However, there can be serious legal consequences for doing so; specifically, the retailer could be subject to a suit for breach of an implied covenant of continuous operation.”
Note: The above is an excerpt from the article published in the Fall/Winter 2010 issue of USLAW Magazine. Click the link below to read the actual publication.