New flagship shop in Toronto is a question mark at this stage

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Apple is reportedly threatening to abandon its plans to open a new retail store in Toronto, Canada.

Apple is threatening to abandon its plans for a Toronto mall
Source: Eduardo Lima/The Globe and Mail

A new residential tower in the city, The One, is now being constructed, and the business has threatened to abandon its intentions to build an Apple Store there, according to The Globe and Mail. As a result of delays in the building’s development, Apple claims it has exercised its right to cancel the proposal.

If Mizrahi Developments fails to meet certain dates, the store may invoke a clause that permits it to walk away without any financial penalty, according to court papers filed by Mizrahi Developments in Ontario’s Superior Court of Justice on Oct. 5, 2021.

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Apple no longer has the option to cancel the lease, according to Mizrahi, which claims it has not missed any deadlines. As a result, the developer is seeking a restraining order against the merchant. According to Mizrahi’s court argument, it will suffer “irreparable injury from losing a world class tenant,” which cannot be compensated for in damages, in the loss of a world-class property’s anchor tenant.

Because of the flu epidemic and a local plumber’s strike, the building’s developer claims they were given permission to postpone the project’s completion. “Apple said it would utilise its rights to cancel the contract and presented a list of goods it felt Mizrahi could not supply,” Mizrahi says. According to the developer, the space in which Apple was to be housed has been specifically designed for the corporation.

For more than 15,000 square feet, the IT company’s lease included over 9,000 square feet on the main level. As part of the deal, Mizrahi promised to pay Apple’s architect $6.24 million as of mid-October, according to Mizrahi’s court pleadings, to cover the cost of creating the shop.

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Seven layers of glass surround Apple’s facility, with no gaps. At an average cost of $400,000 per panel, Mizrahi asserted in its court papers that the 34 panels were specifically manufactured from integrated pieces and resembled Apple storefronts throughout the globe.

If Mizrahi loses the legal fight, the developer will be compelled to find a new occupant for its new retail space in the neighbourhood. In the meanwhile, it’s not clear where Apple plans to establish a new shop (or if it would still do so).

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