North Shore Whole Foods Store Faces Financial Troubles
In a surprising turn of events, the Whole Foods Market in Beverly finds itself embroiled in a legal battle with the shopping plaza’s owner and construction managers. The beloved grocery store is facing financial troubles due to alleged faulty foundation construction, leading to a myriad of structural issues that have put the store’s future at risk.
The Whole Foods Market in Beverly is allegedly “sinking” due to faulty foundation construction, which has caused extensive damage, including spontaneously breaking glass windows, damaged doors, and cracks in the floor and walls. These structural issues have prompted Whole Foods to take legal action against the local management company CEA Beverly LLC, also known as CEA Group Inc., and the engineering and construction firms responsible for the store’s construction.
In a lawsuit filed in Boston federal court on Jan. 30, Whole Foods claims that the store’s improper construction on top of an old landfill has made it “structurally unsound.” The store has experienced cracks in the walls and floor slab, bulges and distress in interior walls, gaps between walls and the ceiling, and multiple areas where the floor is not level. To mitigate the risk of glass shattering, Whole Foods had to replace its storefront glass windows with acrylic ones.
Furthermore, the store has faced challenges with its doors, which have been affected by the shifting foundation. The uneven decomposing materials in the rubbish fill are expected to worsen the existing problems, posing a significant threat to the store’s operations and safety.
CEA Group Inc. owns and leases the North Shore Commons Shopping Center at 150 Brimbal Ave., where the Whole Foods store is located. In January 2013, Whole Foods entered a lease agreement with CEA Group to develop the store, with the responsibility of constructing and designing the building shell falling on CEA Group. Construction commenced in late 2017 and early 2018, with the store opening its doors to customers on Oct. 17, 2019.
By mid to late 2022, Whole Foods began noticing “numerous structural and foundational issues” with the store, indicating that certain areas were “noticeably sinking into the ground.” The store anticipates incurring significant costs to correct and remediate the negligent work, with potential losses of about $1 million in weekly profits if the store needs to close for repairs. Moreover, there are concerns about reputational harm and loss of goodwill from customers and vendors if the issues persist.
Whole Foods has taken legal action against the management, engineering, and construction companies involved, citing breach of contract, negligence, and liability. The store seeks reimbursement for the out-of-pocket costs incurred in fixing the damages and covering court fees. While Whole Foods refrains from commenting on pending litigation, Steven Cohen, the president of CEA Group, has yet to respond to requests for comment.
As the situation unfolds, the City of Beverly building commissioner’s stance on the store’s safety remains unclear, adding to the uncertainty surrounding the store’s future. Amidst these challenges, the North Shore Whole Foods store faces an uphill battle to address the structural issues and secure its longevity in the community.
Beth Treffeisen, a seasoned reporter for Boston.com, continues to monitor the developments surrounding the Whole Foods store in Beverly, shedding light on the local news, crime, and business landscape in the New England region. Stay informed with the latest updates by signing up for the Today newsletter, delivering essential news straight to your inbox every morning.
And so, the North Shore Whole Foods store’s financial troubles paint a picture of uncertainty and resilience in the face of adversity, as the community rallies behind a beloved institution fighting to overcome unforeseen challenges.
