Nike sued over unpaid rent

Sportswear giant Nike is being sued for more than £350,000 of unpaid rent for premises in Sunderland. Landlords British Real Estate Fund accuse Nike (UK) and its Netherlands sister company of failing to pay rent on the property at 1 Victory Way, Doxford International Business Park, Sunderland. It alleges that £361,567 is outstanding. Nike took a 10-year lease of premises from May 2004 at a rent of £420,000 pa, according to the claim. Sister company Nike European Operations Netherlands acted as guarantor. In April 2008, Nike gave notice under a break clause, but the landlords say that the notice was ineffective because Nike breached the lease by failing to keep the property in good repair. The claim alleges that the lease therefore continued and was not ended by the notice. However, it alleges that Nike has failed to pay rent, insurance and service charges due under the lease, amounting to £361,567. British Real Estate Fund, of St Peter Port, Guernsey, is seeking payment of the money, together with a declaration that the lease has not been terminated.