Amazon sued by Willow Grove shopping center landlord over unopened Amazon Fresh store

As unopened Amazon Fresh stores in Bucks and Montgomery counties continue to sit dormant, one Willow Grove landlord has filed a lawsuit against the online retail giant.

Federal Realty Investment Trust, owner of the Willow Grove Shopping Center where an Amazon Fresh was expected to open, filed a lawsuit in March claiming the tenant breached the terms of its lease agreement.

Listed as defendants are Amazon Retail, LLC and Amazon.com, Inc.

The suit, filed in Montgomery County Civil Court by Kierstin M. Lange of Zarwin, Baum, DeVito, Kaplan, Schaer & Toddy, P.C., alleges Amazon failed to make timely payment on rent as specified in the lease.

Since entering into an agreement in April 2020, the suit claims the landlord prepared the premises by performing construction work and obtaining required permits, allowed the tenant access to the space for interior fit-out work and provided necessary notifications regarding work timelines and rent.

However, the defendants’ answer to the claim tells another story.

In a counterclaim filed May 8 by Greenberg Traurig LLP, the firm representing Amazon alleges the landlord defaulted in satisfying its obligations set forth in the lease, and in doing so, rent was not yet due.

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Daniel Ansell, co-chair of real estate litigation for Greenberg Traurig LLP said he was unable to comment.

Neither Lange nor Jeff Fischer, the leasing agent for Willow Grove Shopping Center at Federal Realty Investment Trust, immediately responded to requests for comment.

According to the lawsuit, Federal Realty Investment Trust and Amazon entered into a lease agreement in April 2020 for the 31,000-square foot space formerly occupied by Barnes & Noble Bookstore. The shopping center is currently home to large retailers, such as Marshalls, Jared and Five Below.

The suit also alleges that during a conference call held on Oct. 12, 2022, the landlord was informed Amazon had made a companywide decision not to open all retail stores originally intended to open throughout the country in 2023.

A look at the Warrington Amazon Fresh: Amazon Fresh opens in Warrington to a crowd of eager shoppers looking to up their grocery game

Amazon Fresh stores in Middletown and Bensalem remain unopened

In addition to the Willow Grove location, Amazon Fresh stores were also expected to open in Bensalem and Middletown in Bucks County. Both stores remain vacant, and most recently, the sign above the Bensalem store was removed.

Meanwhile, Bensalem Township officials aren’t holding their breath.

“With the removal of their sign, it was a nail in the coffin that they would not be opening,” said Dawn Davis, primary assistant to the mayor.

“Why they’re not going to open, I’m not privy to that information. It’s sad though because (the building was) beautifully done, but I think it’s a just casualty of the economy,” she added.

Amazon did not immediately respond to a request for updates on the Bensalem and Middletown stores. When asked in September, Kim Kornfeld, an Amazon spokesperson said the company would not comment on their “future roadmap.”

Amazon does not typically even confirm a new store location with the first official word coming when the store is ready to hire.

Amazon Fresh stores first arrived in Pennsylvania when it opened its Warrington location in August 2021. Since then, the only other Pennsylvania location opened in Broomall in September.

For subscribers: Is Amazon Fresh opening soon in Bensalem and Middletown? Amazon isn't talking, but here's what we know

This article originally appeared on Bucks County Courier Times: Willow Grove landlord files lawsuit over dormant Amazon Fresh store