Early hearing of 'keep open' dispute in Tesco superstore

High Court Reporter

A dispute over a "keep open" clause in an agreement between Tesco Ireland Ltd and an independent retailer who had space in one of the supermarket chain's stores is to be given an early hearing date, the High Court has heard.

Tesco has been given temporary undertakings from interiors/homewares chain Choice Stores not to shut their outlet, which is within a Tesco superstore at Poleberry in Waterford city, pending the hearing of the dispute. The case is against Multi Home Retail, trading as Choice Stores.

On Thursday, Andrew Fitzpatrick, for Tesco, and Joe Joeffers, for the defendant, told Judge Brian Cregan that the undertakings to keep the Choice outlet open had been complied with, but the parties were looking for an early hearing date of the matter.

The judge said he expected to be able to give a date for next month.

The court was previously told Choice started removing its stock over the weekend of January 17th and 18th following a notification from it to Tesco that it would be winding down operations in Poleberry.

Tesco then sought an injunction against it for alleged breach of a 10-year licensing agreement to operate the in-store outlet. The defendant opposes the injunction staying in place.

Choice has occupied a 13,239 square foot unit in the shared superstore area at an annual licence fee of some €214,000 since September 2024.

There is a "break option" in the licence agreement in the fifth year.

Despite approaches by Tesco about measures which would keep the outlet open, Choice was adamant it would be winding down and also claimed there were provisions in the licence agreement which allow for termination in certain circumstances. Tesco says there is no such provision.

Tesco says if Choice is permitted to withdraw, the presence of a large and conspicuous vacant unit in a prominent location posed a real and material risk of reputational and commercial harm to the centre and its occupiers.