Superdry suing Disney over eviction from Disney Springs

Stitchon

Well-Known Member
Original Poster

invader

Well-Known Member
Why would Disney care what their sales are as long as they’re paying their rent on time?
For certain commercial lease agreements the rent will contain a base amount along with a percentage of the lessee's sales. There may also be a clause allowing for termination if sales drop below a specified amount. The complaint (including Superdry's lease agreement exhibit) was sealed so it may not be structured that way but it would be my best guess.
 

Stitchon

Well-Known Member
Original Poster
For certain commercial lease agreements the rent will contain a base amount along with a percentage of the lessee's sales. There may also be a clause allowing for termination if sales drop below a specified amount. The complaint (including Superdry's lease agreement exhibit) was sealed so it may not be structured that way but it would be my best guess.
Bold mine - this is especially true in higher profile shopping centers like Disney Springs. The lease had a kick-out clause at the halfway point (again, very common at high profile shopping centers) and the issue at hand seems to be Disney wanting to exercise that clause and Superdry arguing that its lease covers extraordinary circumstances like COVID hurting sales.

Why would Disney care what their sales are as long as they’re paying their rent on time?
The best shopping centers want the best tenants. If a tenant is struggling, a property like Disney Springs would want (and theoretically be able to bring in) a tenant that is more successful in that space. Superdry's store is fairly large, and I wouldn't be surprised if they could split the space for two tenants paying higher rent than Superdry does.
 

DznyGrlSD

Well-Known Member
In the Parks
Yes
For certain commercial lease agreements the rent will contain a base amount along with a percentage of the lessee's sales. There may also be a clause allowing for termination if sales drop below a specified amount. The complaint (including Superdry's lease agreement exhibit) was sealed so it may not be structured that way but it would be my best guess.
From what I was told a long time ago (from a not-so-reliable source) Disney gets something like 6% of profits from every occupant at Springs
 

SteveAZee

Well-Known Member
I believe they get a cut of revenue, not profit.
That's not good. I guess it's sort of good from Disney's perspective, but bad for the businesses trying to succeed and likely a cause of a lot of turnover. I'm sure Disney has that all factored in, but...
 

Stitchon

Well-Known Member
Original Poster
That's not good. I guess it's sort of good from Disney's perspective, but bad for the businesses trying to succeed and likely a cause of a lot of turnover. I'm sure Disney has that all factored in, but...
This is standard practice for many (if not all) high-tier shopping centers, like the nearby Mall at Millenia. In the case of Superdry, they made a bad bet on expansion right as their cultural moment was coming to a close, and have been having difficulties for the better part of a decade.
 

Dead2009

Horror Movie Guru
So wait, they were underperforming at the Disney location 2 years ago, tried to sue Disney over being kicked out.....and theyre STILL underperforming across the board? They deserved to be kicked out at this point.
 

James J

Well-Known Member
In the Parks
No
I live near the town (Cheltenham) that Superdry started in. They tried opening a second store focused on sportswear and gym attire a couple of years ago, which barely lasted 12 months before it was declared a failed trial. The business just isn't doing well, and Superdry clothing in general is on the pricey side.

The founder Julian Dunkerton has been having run-ins with the local government recently, regarding a dispute around some ridiculous marquees at the historic building his restaurant operates from. Seems like he's not having a great time of late...
 

Wendy Pleakley

Well-Known Member
A successful business contributes to the appeal and draw of Disney Springs as a whole.

A more popular clothing store might draw in more people who will then spend money on dining and at other shops.
 

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