Department store giant Myer has threatened to pull out of a retail centre that bears its name in Adelaide city, alleging the centre’s landlord has breached its lease agreement.
The owner of the Myer Centre in Rundle Mall, YTL Starhill Global REIT Management Limited, said in an announcement posted to the Singaporean Stock Exchange, that it had received a notice of arbitration claiming Myer was entitled to terminate its lease.
The department store alleged the lease agreement was breached because the centre was “substantially empty of suitably presented retail stores”, according to the announcement.
Watch the latest news and stream for free on 7plus >>
It follows Myer’s announcement earlier this month that it will also leave its home in Brisbane’s Queen St Mall because it was unable to reach an agreement with the landlord.
In Adelaide, the retailer has anchored the eight-storey building at the western end of Rundle Mall for more than 30 years.
Known as Rundle Mall’s Myer Centre, it is the largest Myer store in South Australia and accounts for less than 10 per cent of the Singaporean company’s portfolio revenue.
The centre’s landlord said in the announcement that arbitration was at an early stage and the process was expected to take 12 months, unless there was a settlement.
It denied Myer’s allegations and said it had sought legal advice.
“The Manager considers that the Arbitration Claim is ill-founded and will take all steps necessary to vigorously defend the Arbitration Claim,” said joint company secretary Lam Chee Kin in the letter.
A spokesperson for Myer said it would not make further comment.
“As the matter is subject to legal proceedings, we will not be commenting further at this stage,” they said in a statement.
If you’d like to view this content, please adjust your .