IKEA sued for move to Home Ranch

Paul Clinton

The Irvine Co. has sued IKEA, saying the furniture retailer violated

its lease when it pulled up stakes to move to Costa Mesa from Tustin.

IKEA’s new store opened in May at Home Ranch. At the same time,

the company closed its Tustin location.

In the suit, filed last week in Orange County Superior Court, the

Newport Beach-based Irvine Co. said the move constituted a breach of

the lease, which prevents IKEA from opening another store within

eight miles of the Tustin Market Place store.

“The lease we have with IKEA contains specific agreements that the

tenant IKEA won’t open another store within eight miles of the Tustin

store,” said Jennifer Heiger, spokeswoman for the Irvine Co. “In

addition, IKEA cannot close the Tustin store if it’s in default of

the lease.”

The Irvine Co., which owns the Tustin Market Place, is asking for

a judge’s determination about whether IKEA broke its lease.

While the Irvine Co. contends the IKEA store is slightly more than

seven miles from the new store, IKEA says the new store is about 10

miles away.

IKEA has also been working to find a replacement tenant to fill

its former space.

“We’re still optimistic that we can work out an agreement that

will please everyone in the end,” said Joseph Roth, director of

property public affairs for IKEA. “We’re a bit disappointed that they

chose to go this route.”

Roth said IKEA has submitted a potential sublease tenant to fill

the 150,000-square-foot space in Tustin. The company is now paying

rent on the empty building, Roth said. At 310,000 square feet, the

Costa Mesa store is the largest retailer in Orange County.

IKEA inherited the lease in Tustin when it purchased the building,

which had been occupied by a STOR furniture store.