Legal Question in Landlord & Tenant Law in Illinois

I am in desperate need of some legal advice. I have started a perfume kiosk in a mall with high expectations. The leasing agent sweet talked to us (swore on his mother that everyone was paying that high rent) and made us sign a 3 year lease with $3100 per month rent. The only smart thing that we did was to include a condition that we can get out of lease after 15 months by giving 3 months notice if we do not meet 280,000 per year Gross in one year. It is highly unlikely that I will make 100,000 gross. We operate at 40% margin. We are currently loosing 1000 to 1500 per month from our pocket and are extremely frustrated. We have started this business in october 2009. We made some money in Dec 09 which was good enough for setup expenses. I paid 10,000 for kiosk,2500 for signage, 1000 for kiosk additions, 1500 for electrical work + 50,000 in inventory. I have invested my 12 years of savings into this business. There is a high end store that sells beauty products + saloon +colognes and perfumes right across my kiosk. It would open in 2 months. How do I figure out if this new store is an Anchor store or not. Because my lease says that I can get out if any such store opens. Please read the exact text from my lease

My big question is CAN I GET OUT OF LEASE BY USING THIS CLAUSE ?????? I would be highly thank ful if anybody can give me an answer. I would be the happiest man on earth if I can get out of this mall. I learned my lesson to never start any business again.

� If during the initial 12 months of the term only, Landlord permanently leases other premises in the shopping center for the primary use for the retail sale of perfume and cologne(with the exception of any such use by Anchor Stores or any other tenants existing as of the date of the execution of this lease and their successors, assigns, and/or replacements, and with the exception of any such use in existing leases) then in that event and provided that and so long as tenant is not in default and is operating the leased premises as required herein, the initial tenant names herein may, provided tenana����. �


Asked on 6/18/10, 11:22 pm

1 Answer from Attorneys
David Labovitz Labovitz Law Firm, P.A.

Your lease should provide you with the definition of "Anchor Tenant." Usually, an anchor tenant is a very large tenant such as Sears, Macy's, etc. The new store is probably not an anchor store, which would be a good thing for you. In that case, you would have to argue that the new store's primary business is the sale of perfume and cologne. While your at it, you might also argue that the leasing agent grossly misrepresented to you regarding the potential sales of the mall.

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Answered on 6/19/10, 6:15 am


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