The Supreme Court has ruled against Bewley's Cafe in a legal battle with its landlord over rent reviews.
The group's Chief Executive says rent of €1.5 million for its Grafton Street business is 'oppressive'.
This case centred around the interpretation of a complex lease Bewleys entered into back in 1987, which allowed for its rent to be revised every five years.
The question was whether they had entered into an upward only rent review contract- the Supreme Court has found that they did.
That means, as of 2012, Bewleys has to pay landlord Ickendel annual rent of €1.4 million – the cafe had hoped for a more market friendly figure of €728,000.
Group Chief Executive John Cahill has called the current rate oppressive, a rate set back in 2007 at the height of the unsustainable property bubble.
Retail Excellence Ireland has slammed the Supreme Court's decision, saying it is bad for jobs and the domestic economy.
Retail Excellence Ireland CEO David Fitzsimons says it is not just Bewley's that is being affected by today's ruling:
Supreme Court judge Ms Justice Mary Laffoy emphasized that the construction of this particular lease does not have wider application.
