What you need to know
- Apple is officially seeking to end its planned Toronto flagship store agreement.
- It is suing the developer of the skyscraper 'The One' in downtown Toronto.
- Apple says that it is disappointed in the developer and is owed millions of dollars.
Apple is officially suing to terminate the lease of its planned flagship store in Toronto, claiming it is owed millions of dollars by the developer of 'The One'.
From The Globe and Mail:
Technology giant Apple Inc. increase is suing Sam Mizrahi's company to terminate its lease at the developer's long-planned 85-storey skyscraper in downtown Toronto, saying it is "disappointed" in the company and is owed millions of dollars in damages for missed deadlines.
Apple previously had well-documented plans to build a brand new flagship Apple store in downtown Toronto on the ground floor of the new 85-story skyscraper 'The One', situated on Yonge and Bloor. Earlier this year it was reported that Apple was considering bailing on the projects because of claims the developer had missed deadlines in the building of the 15,000 square foot store.
According to this latest report, filings from January now indicate that Apple is officially seeking to terminate the lease, as well as asking for some $7 million in delay damages:
Apple claims it is entitled to $6.9-million in delay damages. It is seeking a court order declaring that Mizrahi missed crucial deadlines and that Apple is allowed to terminate the lease. It is also seeking an additional estimated £18,600 it says it is owed in connection with a tri-party agreement between Apple, Mizrahi and the building's architect, London-based Foster + Partners.
The suit alleges that Mizrahi missed 26 items by a Halloween deadline, claiming the delays were a result of Mizrahi's "inability to manage the project", not the pandemic as Mizrahi had alleged. The developer had previously stated that it would suffer "irreparable harm" from losing Apple as the anchor tenant for its skyscraper, a loss that couldn't be compensated for in damages.
With previous reports that the relationship was in doubt, it now seems Apple is firmly committed to moving on from the developer and building its Apple store somewhere else.
