A luxury grocery chain beloved by celebrities, influencers and wellness obsessives is now at the center of a bitter rent battle — and the bill is allegedly piling up faster than a $30 salad.
Erewhon, the upscale California grocer famous for its $20 smoothies and star-studded clientele, is being sued by major real estate firm Hackman Capital Partners, which claims the trendy market failed to pay more than $275,000 in rent and related charges at its Culver City location, according to The Real Deal.
The lawsuit, filed on May 21, alleges that Erewhon breached its lease agreement at The Culver Steps, a high-profile mixed-use development that has become a hub for entertainment and tech workers.
Erewhon signed the lease in 2021, opened the location in 2023, and is committed to the space through 2038.
The deal called for the grocer to pay roughly $86,500 a month in rent during the first five years, with scheduled increases pushing monthly payments above $100,000 later in the lease term.
Additional expenses, including taxes and common area maintenance fees, were also required under the agreement, bringing the total annual costs to more than $1 million — that’s a lot of fancy smoothies.
“Landlord has demanded payment from tenant and tenant has failed to pay,” the complaint states, according to court documents reviewed by the business publication.
Hackman Capital is seeking damages exceeding $275,000, along with legal fees and other costs.
But Hackman isn’t just dealing with grocery store squabbles. The group is reportedly looking to sell the Culver City development for around $150 million, and has grappled with a series of high-profile debt issues, including defaults tied to Radford Studio.
“Any skilled buyer for Culver City will hesitate to purchase the property unless there is clarity on a resolution for the rent that they owe,” a real estate insider told the California Post. “Otherwise a major discount will be applied to the value of the Erewhon lease to a prospective buyer.”
Representatives for Erewhon did not immediately respond to requests for comment.