TravelBrands Inc. disclaims lease on Eglinton Avenue building
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TravelBrands Inc. disclaims lease on Eglinton Avenue building

TORONTO — TravelBrands is disclaiming the lease on 75 Eglinton Ave. East, a building that has been mainly empty since November 2013, but cost the company more than $3 million in rent last year.

The 20-year lease still has about a decade and a half to run but TravelBrands moved all of the employees from the building to its own premises in Mississauga after buying Thomas Cook.

TravelBrands is now in creditor protection.

Earlier this month, 75 Eglinton Avenue East Limited Partnership made an application to the court for an order that was consented to by all interested parties. The order authorizes the owner to offer the building to other prospective tenants and to deal with existing subtenants.

More importantly, a representative of the owner advised the court that on May 29, 2015, the owner received a Notice of Disclaimer from TravelBrands Inc. in respect of lease on the Eglinton Ave., property. The effective date of the disclaimer is June 29, 2015 meaning that TravelBrands intends to terminate the lease as of June 29, 2015.

The landlord is entitled to challenge this disclaimer but at this point it appears that it has not done so. Travelweek has been advised that the parties are in discussions that “are not acrimonious”.

Travelweek shall provide further details once we become aware of them.

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