Roundy’s Lawsuit Seeks Rent Shares From Kohl’s Food Stores

Roundy’s Supermarkets Inc. has filed a lawsuit against the defunct Kohl’s Food Stores Inc. and its parent company, The Great Atlantic & Pacific Tea Co. Inc. (A&P), asking a judge to force A&P to honor a rent agreement it signed when Roundy’s took over a former Kohl’s supermarket.

The store at 1123 N. Van Buren St., Milwaukee, is one of seven Milwaukee stores that Roundy’s, parent company of Pick ’n Save, bought when A&P shut down Kohl’s Food Stores in 2003. As part of the sale, A&P agreed to pay a share of the property’s rent through 2020, according to court documents.

But A&P’s attorney, Donald Schoenfeld of von Briesen & Roper SC, sent Milwaukee-based Roundy’s a letter in August saying it would no longer pay the rent contributions as of Sept. 1. The letter offered no reason why A&P was stopping the payments, but encouraged Roundy’s or its counsel to contact Schoenfeld to “further discuss the transition,” according to a copy of the letter included in the complaint.

A&P is supposed to pay $23,000 a month toward the rent through October 2013, $19,000 a month from November 2013 through March 2015, and $23,000 a month from April 2015 through March 2020, according to the complaint.

To read the rest of the story, please go to: The Business Journal of Milwaukee.