An interesting problem for Shawnee Tubing Industries has erupted once again as the new owner and the current landlord, Shawnee Tubing Real Estate, have a dispute over the leasing agreement. STRE believes that the new owner of STI, American Industrial Acquisition Corporation, has not paid rent in five months.
STRE has stated that it is evicting STI from its site located at Wolverine Road, which could threaten the jobs of 175 people working at the facility. The primary issue is that the company and new property owner aren’t able to come to an agreement on a fair rent payment. AIAC claims that it is customary for stakeholders on both sides to provide temporary rent relief, so the business has a chance to recover from recent changes. In this case, that has not happened.
AIAC claims it has invested $5 million to restart the business thus far. The STRE manager stated that he was disappointed in the press release from AIAC and said no eviction had been served. Presently, there are proceedings moving forward because the two cannot come to an agreement on the rent due.
When you rent a property or take over a property, there may be new negotiations you need to go through with major life changes. Purchasing a business that rents can be a good idea, but only if you can come to an agreement with the landlord of the property or agree with the current rental rates. Your attorney should be there with you to help you get the best possible lease and contract for your business.