TLV Mall sues owners of Golbary and Sacara: they breached the lease agreement and left debts

Blue Square Real Estate, which operates the TLV Mall in Tel Aviv, is suing businessman Moshe Golbary, the owner of the retail chains Golbary and Sacara, for the sum of 35.4 million shekels. The mall claims that Sacara and Golbary operated stores in the complex and breached their lease agreements, leaving behind significant debts.

In the lawsuit filed to the Tel Aviv District Court, Blue Square demands that Golbary be ordered to pay the difference between the rent and management fees actually paid and those charged according to the contract, plus interest and linkage. The mall claims that the tenants initially received concessions, paying rent and management fees at a rate of 22% of revenue, but this benefit expired in December 2018. After the mall refused to extend the concession, the tenants began to breach their agreements.

Golbary canceled its standing order in June 2019, and Sacara stopped making payments in February 2020, "and from that moment ceased to pay the charges according to the lease agreement, until the unilateral evacuation of the store in March 2026." Golbary had vacated its store as early as mid-2021. Golbary subsequently offered to pay a portion of the debt, but the mall rejected the proposal.