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SPoT Coffee (Canada) Ltd V.SPP

Alternate Symbol(s):  SCFFF

Spot Coffee (Canada) Ltd. (SPoT) is a Canada-based company, which designs, builds and operates community-oriented cafes. SPoT operates Company-owned cafes in Canada and the United States. The Company has a total of approximately 25 cafes operating, in development or under construction in the states of New York and Connecticut, including seven corporate-owned cafes located in Buffalo, Rochester, Saratoga Springs, Elmwood, Glens Falls, Orchard Park and North Tonawanda, 11 Operating Franchise cafes Kenmore, Hertel, West Hartford, Hamburg, Roswell Park, Clarence, Williamsville, Waterfront Village, Amherst, West Seneca, Niagara Falls and five SPoT Tops cafe locations, two Express cafes operating under license to Chartwells at the Buffalo State College. SPoT's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices, and resellers such as universities and hospitals.


TSXV:SPP - Post by User

Bullboard Posts
Post by warrenvon Sep 24, 2014 9:30pm
183 Views
Post# 22968162

Spot Coffee terminated Toronto lease (full text)

Spot Coffee terminated Toronto lease (full text)Hi all I am curious as to find out if they are searching for a new Toronto location, maybe they are out of Canada for good. 2014-09-23 20:43 ET - News Release Mr. David Freeman reports LEASE OF SPOT CONCORD PLACE CAFE TERMINATED Concord Adex Developments Corp. decided yesterday to terminate the lease of Hot Spot (Concord Place) Inc., which owns and operates a Spot Coffee (Canada) Ltd.'s Spot Coffee cafe on 333 Bremner Blvd., Toronto. Concord Adex claims that termination of the lease has been by reason of breaches of covenants in the lease. On Nov. 1, 2012, Concord Adex unexpectedly invoiced Spot Concord Place the sum of $138,951.70, which included HST. Concord Adex claimed that this amount was for additional rent that was not previously invoiced by Concord Adex for the period of the past five years -- that is, 2007 and up to Nov. 1, 2012. The lease provides that additional rent should be invoiced by the landlord in a timely fashion at the end of each year of the lease. Such timely invoicing especially of drastic changes in the fixed operating costs of the cafe would have allowed Spot Concord Place the time and the opportunity to calculate and adjust its selling prices accordingly. However, to preserve its good relationship with Concord Adex, management of Spot Concord Place elected to avoid entry into legal disputes for a ruling on this matter and chose instead to amicably negotiate a settlement of these untimely and sudden additional rents. On Sept. 16, 2013, Concord Adex and Spot Concord Place entered into a settlement agreement, which provided that Spot Concord Place pays Concord Adex the total sum of $90,400, including HST, instead of $138,951.70. The settlement agreement further provided that Spot Concord Place pays the $90,400 in instalments starting with the payment of $22,600, including HST, on Sept. 30, 2013, and the monthly payment of $5,650, including HST, thereafter until Sept. 30, 2014. All these payments have been paid by Spot Concord Place to Concord Adex. The only remaining payment is the last one due Sept. 30, 2014. Last month, Spot Concord Place advised Concord Adex that it would be late in paying rent catch-up payments as per a schedule of lease payments that was mutually agreed upon. Spot Concord Place also advised that the delay was due to the financial strain caused by the payments of the substantial additional rent that was levied against Spot Concord Place for the years 2007 to 2012 and that was only invoiced in late 2012. Despite best attempts by Spot Concord Place to rectify the breach by the end of November of this year, Concord Adex insisted on the immediate full payment not only of the rent arrears but the additional amount of $48,551.70 ($138,951.70 to $90,400) for additional rent that was discounted in the settlement agreement that it cited as being terminated due to the breach in the covenant of the lease. This final and uncompromising position taken by Concord Adex since the entry of its lease with Spot Concord Place on May 25, 2006, led to the unfortunate termination of the Spot Concord Place lease. Spot Concord Place is very proud that it was able to serve the community of Spot Concord Place for the last nine years despite the challenging start-up years when it was building up the business. All the staff and employees of Spot Concord Place convey to each and every customer of Spot Concord Place their sincere feelings of sadness for not being able to serve them any longer and to enjoy the contented look on their faces with the service and quality food and beverages of Spot Concord Place. They will miss you all.
Bullboard Posts