Federal Realty Investment Trust, the landlord of Willow Grove Shopping Center, has initiated legal action against Amazon regarding the unopened Amazon Fresh store in Bucks County and Montgomery County. The lawsuit, filed in March, alleges that Amazon, including Amazon Retail, LLC and Amazon.com, Inc., violated the terms of the lease agreement by failing to make timely rent payments as specified.
According to the lawsuit, Federal Realty Investment Trust and Amazon entered into a lease agreement in April 2020 for a 31,000-square foot space formerly occupied by Barnes & Noble Bookstore. The shopping center is home to prominent retailers such as Marshalls, Jared, and Five Below. The landlord claims that it fulfilled its obligations by performing necessary construction work, securing permits, and providing access to the premises for interior fit-out work. They also assert that they duly notified Amazon about work timelines and rent.
However, Amazon’s response to the claim presents a contrasting narrative. In a counterclaim filed by Greenberg Traurig LLP, the legal representatives for Amazon, it is alleged that the landlord defaulted on its own obligations as outlined in the lease agreement. Amazon argues that the rent was not yet due as the landlord failed to satisfy its lease-related responsibilities. Daniel Ansell, co-chair of real estate litigation for Greenberg Traurig LLP, refrained from commenting on the matter.
The unopened Amazon Fresh stores in Willow Grove, Bensalem, and Middletown have caused speculation and concerns among local officials and communities. The Willow Grove location, where the lawsuit is centered, is yet to commence operations. Similarly, the Bensalem store recently removed its sign, indicating uncertainty about its future. Bensalem Township officials have expressed doubts about the store opening, citing the removal of the sign as a discouraging development. The Middletown store in Bucks County also remains unopened.
Despite inquiries, Amazon has not provided specific updates or explanations for the unopened stores. The company’s spokesperson previously stated that they would not comment on their “future roadmap.” Amazon typically maintains secrecy around store locations until they are ready to hire employees.
Pennsylvania witnessed the arrival of Amazon Fresh stores with the opening of the Warrington location in August 2021. Since then, the only other Pennsylvania location that has opened is in Broomall in September. The unopened stores, including the one at Willow Grove Shopping Center, have left the community and authorities puzzled about the reasons behind Amazon’s decisions.
As the lawsuit unfolds, it will shed light on the disputes between Federal Realty Investment Trust and Amazon, potentially offering insights into the fate of the unopened Amazon Fresh stores and their impact on the local retail landscape.
