According to a popular butcher, he was given the boot by Westfield without any explanation.
Craig Cook, whose stores are located in Newcastle and Sydney, was removed from his flagship Bondi location after the company’s parent company, Scentre Group, decided not to extend his lease.
In response, the award-winning butcher is calling for the NSW government to change the law so that small businesses like his can be protected from the effects of large shopping centers. He noted that if he was an independent business, he would have lost his home and everything he owned.
He was informed in September that he was on holdover due to the company’s plans to change the food precinct. Despite his efforts to negotiate an extension, he was still not given an answer. He said that he was expecting to get a renewal, and he was surprised by his situation.
Despite the situation, the butcher shop has performed well and is currently trading through Covid. However, he is still at a loss. He noted that he has not received rent relief or assistance from the government. Despite the negative situation, his brand is still strong.
The company’s decision to remove him from his flagship location baffled him. He was paying almost $300,000 a year in rent, and he was hit with an 8 percent increase due to the holdover period. As a part of his “make-good” clause, he was required to spend around $80,000 to strip out the entire store. He was also required to pay full rent during the two-week period.
Five of his employees lost their jobs, but he says he is working to place them at other locations. Mr Cook was also concerned about the company’s use of shareholder funds, as he believed that Vic’s Meats was given the same lease terms. The new shop might take around three months to build.
This is money that shareholders have invested in a butcher shop. This month, another leasing dispute occurred at Westfield Chatswood, where the owner of a restaurant resorted to using a security guard to avoid getting evicted. Mr Cook claims that the leasing company has a huge power over the smaller businesses in the mall.
A seasoned commercial real estate agent noted that the NSW government should change the law so that smaller businesses such as the butcher shop can have the last right of refusal when it comes to leasing. He added that this would allow them to avoid getting evicted. A spokesperson for the company said that Craig Cook’s Natural Butcher will be leaving Westfield Bondi.
According to the spokesperson for Westfield Bondi, the butcher shop’s lease had already expired in September 2023, and they were allowed to extend it until June 2024. She noted that the mall is experiencing a high demand for space. The company’s team is focused on finding the best possible retail offerings for its customers.
The spokesperson for the mall noted that they are excited to announce that Vic’s Meats will be joining Westfield Bondi. She said that they are planning on introducing new dining and health experiences in the mall. The changes will be carried out in phases.