North Myrtle Beach company alters beach gear rental plans for summer after judge's ruling
The business is adding express locations near busy areas in North Myrtle Beach. It also closed its retail store along Main Street.
Owner Derek Calhoun said while the changes were partly because of a judge's decision last year to dismiss his lawsuit against North Myrtle Beach for not allowing him to set up beach gear along the city's shores, it was also part of the company's expansion plans.
Cherry Grove Beach Services have entered into contracts to have express rental locations at The OD Pavilion, Ocean Drive Beach and Golf Resort and the Maritime Beach Club, Calhoun said. The locations are in popular spots for people who are staying in the area, he said.
The company will still provide delivery services of the equipment, but won't be able to set up the gear because of the court decision, Calhoun said.
Calhoun was in a two-year legal battle with the city regarding the set-up of chairs and umbrellas on the beach.
Derek and Jacqueline Calhoun filed a lawsuit against the city in July 2022, claiming violation of antitrust laws, defamation and violation of state and federal contract clauses. They claimed in federal court that the city was monopolizing the rental of beach gear on the shores.
A court order released on Sept. 6, 2024, stated that North Myrtle Beach has a monopoly on beach equipment setup but that it's legal under South Carolina law.
A soft opening of the express locations will be every weekend beginning in May and then will be fully open Memorial Day weekend.
Calhoun said as the rental service grows, he hopes to cut down on the number of chairs and umbrellas being left next to garbage cans in the city.
He said he sees chairs that people bought for the week left behind to be thrown away.
For vacationers, it's a cheaper option so they don't have to go get their own, Calhoun said.
But for Calhoun, this option could be a make or break for the business.
'There's nothing else we know to do,' he said.
The city has prohibited commercial transactions on the beaches since 1981, when the ordinance passed, according to the 2024 court order. This includes advertising, selling and completing business transactions. The ordinance was most recently updated in 2007.
South Carolina law cited in the court document states that municipalities are able to 'grant franchises and make charges for use of the public beaches.'
Cherry Grove Beach Gear has applied for a franchise agreement to allow the setup of beach furniture on the beach but have been denied twice. Despite being fined over $20,000 and being told repeatedly by the city to stop, the company has continued to set up beach furniture until recently, according to comments and posts on Facebook by Cherry Grove Beach Services.
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