Los Angeles-based company Guess Retail Inc. is in legal hot water. A New York City landlord has filed a lawsuit against the company in the U.S. District Court in Manhattan for allegedly backing out of a lease, reports WWD.

The property owner, Lex Acquisition LLC, claims that Guess originally agreed to a 15-year lease in June 2008 (before the economy started tanking in Oct. 2008) to rent its entire building at 720 Lexington Avenue, says the source.

Lex Acquisition points to the $30 million lease saying it was to begin no later than Aug. 1, 2009, and that it had already cleared out Steven Madden Retail, Ltd., its former tenants, to make way for the new Guess store, reports the site.

Although Guess informed Lex Acqusition that it wasn't going to take the space on May 20, 2009, the landlord is suing for breach of contract. No word yet on what damages and attorneys' fees the property owner is seeking.

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