Natural foods grocer Jimbo’s Naturally has filed suit against Horton Plaza for breach of contract, claiming the Westfield-owned and -operated downtown center has caused the grocer to lose millions of dollars in sales.

The complaint, filed on May 22 with San Diego’s Superior Court, alleges Horton Plaza has failed in its contractual obligation to operate the mall as a “first-class regional shopping center,” thus causing the grocer to miss out on foot traffic and spend extra on increased security.

It also contends that the mall operator has let the center fall into disrepair, creating a crime-ridden, “unwelcome environment for both customers and employees.”

Westfield, through a company spokesperson, declined to comment on the litigation.


Founded by Jim “Jimbo” Someck in 1984, Jimbo’s specializes in local, organic produce and non-GMO products. The company has five San Diego stores, including the flagship Horton Plaza location, which opened its doors in 2013.

Jimbo’s entered into a 15-year lease agreement with Westfield Horton Plaza in May of 2012. At the time, the company invested a significant sum of money into the downtown store with the understanding that Horton Plaza would be significantly renovated, Someck said when reached for comment.

× Jimbo’s complaint alleges that Westfield’s neglect of Horton Plaza has caused the grocer to lose millions in sales.

Specifically, Jimbo’s spent more than $5 million in tenant improvements with the belief that Westfield would invest $400 million in Horton Plaza, the complaint states. Instead, Westfield “abandoned its plans to renovate Horton Plaza and decided to sell the mall instead.”


Horton Plaza, opened in 1985, has seen an exodus of tenants in recent years. Nordstrom notably exited its anchor placement in 2016, hastening the mall’s descent from a celebrated San Diego landmark to a near ghost town. Mall operator Westfield previously promised a revitalization, but is thought to be exploring a sale of the 900,000 square-foot property instead, as noted in the suit.

“Westfield’s complete disinterest in maintaining Horton Plaza was appropriately demonstrated when it did not even bother to decorate the mall for the holiday season in 2017,” the suit states.

Meanwhile, Westfield is in the midst of its own transformation, with French real estate firm Unibail-Rodamco set to take over the entity on Thursday, completing its $16 billion buyout of the brand.

“It’s not any secret that (Westfield is) trying to get out from underneath (Horton Plaza) at this point,” Someck said. “That leaves me in an untenable position.”


Through the complaint, Someck is seeking an unspecified sum in monetary damages, likely exceeding $1 million, as well as a commitment from the mall operator to run the property as a first-class facility.

Jimbo’s Natural Family Inc vs Horton Plaza LLC, case No. 37-2018-00025251-CU-BC-CTL, was filed May 22, 2018 with the Superior Court of California, County of San Diego.


Business

jennifer.vangrove@sduniontribune.com (619) 293-1840 Twitter: @jbruin