Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
Specialist Retailers
Duty-free Retailers
Return to: RBR Home | Specialist Retailers | Duty-free Retailers

DFS Group files lawsuit against Guam tender

RBR Staff Writer Published 31 May 2013

Travel retailer DFS Group filed a lawsuit in the Superior Court of Guam challenging Guam International Airport Authority’s (GIAA) granting of rights to open concession at Guam Antonio B Won Pat International airport’s main terminal to Korean operator Lotte Duty Free.

A concurrent appeal was also files to the Guam Office of Public Accountability.

Fellow bidder JRDuty Free has also filed a notice of protest with GIAA relating to the award of the concession to Lotte Guam.

Commenting on the protest, JR Duty Free said, "The directors of the James Richardson Group highly value integrity of process and do not take this decision lightly. Given the weight and volume of discrepancies continually coming to light surrounding the award of the RFP, JR/Duty Free believes this action is well justified."

DFS chief operating officer Michael Schriver told Kuam News, "The lawsuit seeks to force the GIAA to behave fairly and in accordance with applicable law in the award of this critical airport duty-free contract."

As per the outlined plan in the deal, the airport's rental revenues will raise from the current $4.5m to $15.4m and Lotte has agreed for $23m in airport improvements.

The retailer added: "As such, DFS has unilaterally committed to pay the higher guaranteed fees that the GIAA announced it would receive under a new contract?an additional $10.9m annually from July 14 2013, the date that DFS was notified its tenancy will expire. Until a new lease is validly enacted that is consistent with applicable law."

"DFS thus is willing to ensure that the government of Guam and its citizens will suffer absolutely no loss of concession revenues as a result of DFS' efforts to require GIAA to comply with its rules."