Woolworths Masters hardware in court over Bendigo deal
Woolworths’ struggling hardware chain Masters is locked in a dispute in the Supreme Court of Victoria over a deal to build a store in Bendigo on which it ultimately pulled the pin.
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A property development company owned by Maxi Foods founder Brendan Blake is suing Masters and Woolworths for a breach of contract over an agreement to build a Masters store in Strathdale, near Bendigo.
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In a directions hearing on Friday in the Victorian Supreme Court, lawyers for North East Solution said Mr Blake’s company was seeking damages from loss of rental income as well as appreciation of the property if the store had been built, as well as other costs.
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According to the statement of claim, NES had agreed to lease the premises to Masters for 12 years, at a rate of $1.26 million a year with an option to extend for six five-year terms. It also alleged that it signed an agreement with Masters to build the store at a cost of almost $12 million, to which Masters would contribute almost $3 million.
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The board of Woolworths approved the first agreement for the lease and notified NES in August 2009, and a second, less formal, agreement for a lease was approved by letter on 24 February 2010, NES claimed. Sydney Morning Herald – Read more…
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