CPI Property Group is preparing to take legal action against its tenant C2H, the company that owns the Kara and Pietro Filipi chain of stores in the Czech Republic. C2H recently took the rather unique step of emptying its stores around the country to prevent landlords it owes rent to from seizing its inventory as security for payments. A total of 13 C2H stores are located in CPI-owned shopping malls and the landlord was not amused by the move. “We find this form of negotiating conditions somewhat unfortunate and could even label it as blackmail,” said CPI manager Petr Brabec. He said the company would be taking legal action against C2H’s owner Michal Micka. “The idea as an experienced landlord that that we in this type of case that we would resort to seizing goods is extremely naïve.” He added that C2H’s decision was surprising because it was the one company CPI has been unable to reach a compromise with in terms of rents. Micka told Forbes magazine that he hadn’t intended to criticize anyone in particular and that all future negotiations would take place in private.
