LIMITED IN LEASE IMBROGLIO
NEW YORK — Its name may be Limited, but its patience is apparently otherwise.
The Limited Inc. is hoping to find out soon whether it can pull out its four specialty retailers from the Glendale Mall in Indianapolis based on its claim that the mall operator reneged on a deal to have at least two major anchor tenants.
The issue is currently in litigation, with Marion County Superior Court Judge Gerald Zore on Monday extending a temporary restraining order through the end of the week preventing The Limited from closing the four specialty store nameplates it operates in the mall, The Limited, Express, Bath & Body Works and Victoria’s Secret.
When The Limited entered into its lease with Glendale, L.S. Ayres, a unit of May Department Stores, and Lazarus, part of Federated Department Stores’ RLG (Rich’s/Lazarus/Goldsmith’s) division, were the anchor tenants. Lazarus exited the mall in July 1999.
The lease reportedly requires that Glendale find a suitable replacement — either a department, variety or specialty store — occupying a minimum of 40,000 square feet within 12 months of when an anchor site goes dark.
The parties are disputing whether a suitable replacement was found, with its resolution affecting The Limited’s right to end its lease. A Lowe’s home improvement center opened nearby, but it reportedly is not physically connected to the mall.
Meanwhile, The Limited has not paid rent since March 2001. Glendale, which has not asked the court to have the specialty chains evicted, is seeking an injunction to keep The Limited from closing its store chains.