Stipulation in contract forces shop to move out of Down East Mall



Wed, 12/15/2010 - 06:20

By David MacDonald
david@peicanada.com

A non-compete clause between Buy-Rite and the Down East Mall in Montague has forced the mall owner to evict a store that had only set up shop a little more than a month ago.
Island Treasures, owned by Cheryl Roche, opened its doors in early November and sold clothing, giftware and discount items, and was located beside Sheldon’s Barber Shop. The store closed its doors on December 5 following an issue culminating with mall owner Ken Sidhu receiving a letter sent by a lawyer representing Buy-Rite owner Joe Lisi.
Ms Roche said she did a good business for the short time she was there and what took place was "unfortunate for the customer." She emphasized she bore no ill feelings toward mall management.
"It’s certainly no reflection on the mall. They did everything they could," she said.
Ms Roche, who once operated a clothing manufacturer in Montague, didn’t rule out returning to the town in the future but couldn’t say in what form or where she would be located.
"There is definitely room for more businesses in Montague," she said.
Mr Sidhu said the issue involved a non-compete clause included in the lease contract between Buy-Rite and the Down East Mall in which Buy-Rite is the only store in the mall allowed to sell "discount items." This was part of the initial contract Buy-Rite signed with the mall back when Arnold and Roger Wightman owned the mall.
Mr Sidhu purchased the mall four years ago.
Mr Sidhu said the plan was initially for Ms Roche to open a clothing store, but additional items were being sold and that’s where the conflict came in.
"There were a lot of products similar to his, and similar suppliers," Mr Sidhu said.
He said he didn’t want to get into a lengthy legal battle over the lease with Buy-Rite without being certain of the outcome. He said the definition of "discount items" is quite broad.
"It (a legal challenge) could last for a long time if we wanted to fight it. It’s not clear cut," Mr Sidhu said. "Buy-Rite has been there a long time; they’re a good tenant."
He said Ms Roche was only to be there for a trial basis until Christmas. At this point, the space is being used by the Tidewater clothing store until after Christmas, and soon after Tax 2000 will set up shop there.
Joe Lisi, owner of Buy-Rite, had little to say on the matter.
"I had no problem with Cheryl," he said. "I have no comment on this. The problem has been solved; the landlord did what he thought was best."

 

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