Mosaic settles lockout rent stoush with Scentre Group

After being locked out of 129 of its stores in Westfield’s malls 10 days ago, the fashion retailer behind Noni B has settled a bitter rental stoush with shopping centre owner Scentre Group allowing it to reopen stores.

The ASX-listed retailer Mosaic Group, which operates stores such as Noni B, Rivers and Katies, said all non-Victorian stores in Westfield shopping centres reopened over the weekend after both groups settled their dispute on “confidential” terms.

Noni B owner Mosaic Brands has reopened 129 stores that were closed on August 20 over a rent dispute with landlord Scentre Group.
Noni B owner Mosaic Brands has reopened 129 stores that were closed on August 20 over a rent dispute with landlord Scentre Group. Credit:Louise Kennerley

Australia’s largest retail landlord Scentre locked the doors on Mosaic’s stores on August 20 in a dramatic escalation of tensions between major landlords and their retail tenants over non-payment of rent as a result of the coronavirus pandemic.

Scentre is also fighting other rent battles with other retailers, including Solomon Lew’s Premier Group, and has sent legal notifications about potential evictions to some parties.

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Last week Mosaic told landlords it would close as many as 500 stores across its network as the company reels from a $212 million loss.

But Mosaic said on Monday in an ASX announcement that its long-standing relationship with Westfield has resulted in an agreement over payment of rents.

“We’re pleased to have reopened our Westfield stores over the weekend following a mutually agreeable outcome to our negotiations with Scentre Group,” chairman Richard Facioni said.

“Our Victorian stores remain temporarily closed for health and safety reasons,” he said.

Victoria’s ongoing harsh social distancing restrictions and lockdown have shuttered multiple businesses, putting further pressure on fragile retailers.

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Source: Thanks smh.com