Legal shocker: Non-competes for outlet tenants invalid

Legal shocker: Non-competes for outlet tenants invalid

Published at: 2018-04-13 10:39 | Author: CIJEurope.com
In what retail landlords will find an unnerving ruling, the Czech anti-monopoly office has decided that Fashion Arena Prague Outlet's should not be allowed to prevent tenants from opening stores in other outlet centers. It ordered the outlet's operator FAOC to inform all of its tenants that the contract items concerning a ban on leasing space in competing projects were invalid.

"We're glad that the office has found that concluding contracts with items that limit stores from trading on the open market is illegal and that it's intervened against the practice," said Martin Kubišta, director of The Prague Outlet, which is due to open in May near the Václav Havel International Airport. FAOC was also fined CZK 1m.

Fashion Arena's director Lenka Čapková says her company will not accept the finding and will fight it, claiming that it contains formal mistakes and that it goes against common practice in Europe.

Similar Stories:

DNHS Park to build new retail center in Szczecin
DNHS Park has secured a building permit for the construction of Rondo Hakena Park in Szcze  »
Warsaw, JLL roll out program to boost retail investment in capital
The City of Warsaw and JLL will implement a pilot program aimed at increasing the attracti  »
DRFG získala tucet nových nákupních parků v ČR
České investiční skupiny jsou při chuti a v plné síle. Naposledy to prokázala spol  »
DRFG acquires up a dozen new Czech retail parks
In the latest show of strength by Czech investment groups, DRFG has acquired 12 retail par  »
Reading about American brands entering the Polish is nothing new, but it’s rare that thi   »
Atrium European Real Estate Limited is exiting Romania, following its sale of the Atrium M   »
Are new retailers arriving in the Czech Republic because of the boom? The Czech Republ   »
One of Romania’s most consistently successful developers, AFI Europe, has big plans for   »