Market Square owners Davinski Nominees take Cotton On to VCAT over claims of unpaid rent
Market Square’s Singapore-based owners are chasing almost $200,000 from Cotton On over what it claims is unpaid rent dating back to 2022.
Geelong
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Cotton On and the owners of Market Square are locked in a bitter legal battle over the fashion retailer’s decision to move its stores from the beleaguered shopping centre to Westfield.
Legal documents filed with the Victorian Civil and Administrative Tribunal reveal the centre’s Singapore-based owners, Davinski Nominees, are chasing almost $200,000 plus interest from Cotton On over what it claims is unpaid rent dating back to 2022.
Cotton On denies any wrongdoing and has filed counterclaims that allege, among other things, unconscionable conduct, and misleading and deceptive conduct by Davinski.
“Full particulars will be provided before trial,” it said in its defence.
A directions hearing is scheduled for August.
Cotton On said it had attempted to bring an end to the legal tussle, hitting out at Davinski when contacted for comment, describing Market Square as “derelict”.
“Despite our ongoing attempts to engage and negotiate with the absent foreign owners, Davinski Nominees have elected to bring action against Cotton On Kids and Factorie,” a spokeswoman said.
“As a result of the derelict centre, including over 40 vacancies, we moved across the street to Westfield Geelong, along with many other retailers.
“Cotton On opened its second-ever store at Market Square in 1992 and is a big advocate of a robust CBD precinct in Geelong – the declining state of Market Square is disappointing to the entire community.”
Knight Frank, which manages Market Square on behalf of Davinski, declined to comment.
Cotton On continues to have a presence in the shopping centre, with its Typo lease due to expire next year.
Davinski’s claims for compensation revolve around the retailer’s decision to vacate its Cotton On Kids and Factorie stores in April 2022.
Cotton On was paying monthly rent of $13,615 and $9725 respectively at the time.
Davinski says it is owed a total of $110,482 in unpaid rent for the kids outlet and $86,674 for Factorie, plus interest on both, alleging the departures breached a lease agreement.
In response, Cotton On claims it was on month-to-month leases while it tried to negotiate an overarching agreement for all its Market Square outlets.
When those negotiations broke down in February 2022, Cotton On says it was within its rights to give Davinski a month’s notice.
Around the same time, Cotton On also moved its flagship store from Market Square to Westfield after its lease expired.
The increasing number of vacant shops in the once-thriving complex is the cause of much concern for city leaders.
Gloria Jeans became the latest tenant to leave when it shut up shop earlier this month.
Franchisee Mohamed Labe said the departure of Cotton On had made his situation untenable.
“Once they lost the Cotton On, from then on there’s been no one around,” he said.
Geelong council revealed at its January meeting that it was unable to contact Davinski during the formulation of its draft masterplan for the area that cost ratepayers $250,000.
The Cotton On Group has annual sales of more than $2bn and more than 600 stores in Australia.
Founder Nigel Austin last week ranked 47th in The Australian’s Richest 250 list with a $2.86bn fortune.
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Originally published as Market Square owners Davinski Nominees take Cotton On to VCAT over claims of unpaid rent
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