Hold onto your $20 smoothies, everybody: Erewhon is facing another lawsuit for unpaid rent. This time around, the celebrity favorite outlet is behind on basics at Michael Hackman’s Culver Steps, a self-described Los Angeles 'oasis' that's also home to stores like Sephora, Formula Fig and CorePower Yoga - offering visitors everything from outdoor movies to sunset workouts.
The Lawsuit Details
The lawsuit, filed on May 21, alleges that Erewhon violated its lease agreement at The Culver Steps. Under the lease, the grocer was required to pay about $86,500 in monthly rent for the first five years, with planned increases raising the monthly payments to more than $100,000 later in the lease term. Added expenses like taxes and maintenance fees were also required in the agreement, bringing the total annual costs to more than $1 million for the ritzy grocery chain. This agreement was signed in June 2021, began June 2023 and wouldn't expire until May 2038, according to the complaint. However, because the tenant 'failed to pay,' the lawsuit claims Erewhon now owes them $275,000 in back rent.
Previous Rent Disputes
This isn’t the first rent-related lawsuit against the glitzy chain: Back in 2022, it was accused of failing to pay rent at its Studio City location. Erewhon countersued, accusing the landlord of unfairly increasing rent and denying access to parking. 'This is the story of a New York developer engaging in a calloused, and illegal, bait-and-switch scheme to dupe its tenants,' Erewhon claimed.
Erewhon's Expansion and Competition
Erewhon is infamous for selling $20 smoothies endorsed by A-listers after opening in the Fairfax District. Now, the grocery chain has 13 locations in the Los Angeles area. The grocer caught the attention of Hailey Bieber, who debuted her now-viral Strawberry Glaze Skin Smoothie with the brand. Since then, Laufey, Travis Scott, Katy Perry, Tyla, Lisa, Katseye and a handful of other celebrities created limited-edition treats for customers. This month, Erewhon announced it would be opening a storefront in Glendale, complete with a tonic bar, cafe and an indoor-outdoor patio space. 'Erewhon’s decision to invest in Glendale reflects confidence in our city’s economic future and the strength of our local economy,' Glendale Mayor Ardashes 'Ardy' Kassakhian said.
Now, Erewhon has some competition as Los Angeles' most luxe grocery store. Laurel Supply Market quietly opened its doors in West Hollywood, instantly attracting curious crowds despite almost no promotion. Inside, shoppers can browse an organic butcher counter, fresh sushi stations, gelato selections, smoothie and juice bars, coffee and matcha counters, indoor café seating and even a health and beauty section stocked with imported products from around the globe. Some of the most jarring prices on items at the store are $16 pouches of flour, organic tenderloin for $59 a pound and a simple loaf of ciabatta is $6. In more direct comparison to Walmart and Whole Foods - which is considered by the ordinary American to be a luxury grocer, tortilla chips cost just over $2 at Walmart, around $3.50 at Whole Foods and a whopping $17 at Laurel Supply.
