Itkowitz PLLC Helped Retailer Exit from Unprofitable Operation Without Triggering Oppressive Effects in Good Guy Guarantee
May 29, 2017
Itkowitz PLLC helped a prominent clothing retailer(1) exit from an unprofitable retail operation without triggering oppressive effects contained in the applicable good guy guarantee. Notwithstanding that the Tenant paid one year’s advance rent as required by the lease as a condition of the exit, the Landlord was still threatening the tenant and its guarantor “to go after them”, even though the Tenant and Guarantor had satisfied all the preconditions to vacating without triggering the guarantee provisions.
What’s the Lesson? The lesson is that retail is not doing well in the age of Amazon Prime. Thus, proving to you, Dear Reader, that my command of the obvious is excellent. Let me add that when exiting a lease with a good guy guarantee before the end the term, scrupulously follow all the good guy obligations to safely protect the guarantor from future liability.
Michelle Maratto Itkowitz