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Garden Ridge's Lease Disputes Heat Up

HOUSTON-A group of building owners for more than seven million sf of leased and subleased space challenge the discounter's refusal to bargain damages en masse. Garden Ridge execs, working through Chapter 11, say renegotiate separately or stores will close.

By Jennifer Brenner Andrade | Updated on June 30, 2004

HOUSTON-Garden Ridge Corp. is claiming its emergence from Chapter 11 bankruptcy has been delayed by a group of dissident building owners that filed a motion with US Bankruptcy Court of Delaware over the right to negotiate damages en masse for unpaid or vacated leases and subleases. Meanwhile, the retailer is telling building owners to renegotiate leases or stores will be shut down.

The locally based Garden Ridge’s retail and distribution locations represent more than seven million sf of leased space. The popular discounter also leases its headquarters at 19411 Atrium Place in far west Houston.

To date, the court has rejected 11 of 47 disputed leases–10 stores and a 750,000-sf distribution center in North Carolina. In contrast, the chain has reached amended agreements at four locations: Greenville, SC, O’Fallon, IL and Round Rock and Grand Prairie, TX. A Sunrise, FL, store is facing shutdown if concessions aren’t granted, according to a Garden Ridge release issued this week about the restructuring.

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