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Walmart wholesaling deadbeat behavior: landlord

(Global Times)

13:51, November 01, 2011

A Walmart in Dalian, Liaoning Province, has been reported as refusing to pay its rent for nearly 10 years despite a court order to do so, reported China Central Television (CCTV).

The refusal stems from a dispute over the property owner's conduct during the store's construction.

The Walmart branch signed a contract with local Wanguo Shopping Plaza in 1999.

The contract stipulated the plaza grant the land and the money to establish a branch in Dalian's Ganjingzi district at a yearly rental fee of 10 million yuan ($1.6 million) per annum for 15 years beginning in 2002, reported CCTV.

But, Walmart applied to the International Economic and Trade Arbitration Commission to terminate the contract after the company couldn't meet construction conditions, including a building permit.

The commission determined Wanguo Shopping Plaza had done everything legally and rejected Walmart's application.

The company still refused to honor the contract. Wanguo then took the company to local court in 2005, CCTV reported.

Calls to both sides of the dispute went unanswered Monday.

Dalian Intermediate People's Court held a discovery with both sides in August, adjourning the case because Walmart couldn't answer who was in charge of the operation when the contract was signed, CCTV reported.

"Court records show the case was last heard in 2006," a staff member with the Dalian Intermediate People's Court told the Global Times Monday.

According to Judge Yu Zhou from Dalian Intermediate People's Court, the reason for Dalian Walmart's refusal to pay for the rents was because it had decided to discard the newly-established store in Ganjingzi district for it has set up a newest one in another district, according to the CCTV report.

According to Yu, the international mega-store chain decided to scrap the Ganjingzi store after setting one up in another district.

At present, Dalian Intermediate People's Court is planning to impose further measures against the Dalian Walmart, according to the CCTV report.


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