Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Saks Faces Eviction in Miami Over $1.9 Million in Unpaid Rent

The department store owner told its landlord this month that it couldn’t make lease payments due to the effects of the Covid-19 pandemic.
Saks Fifth Avenue store in Bal Harbour | Source: Shutterstock
By
  • Bloomberg

MIAMI, United States — An upscale Miami-area shopping mall is moving to evict Saks Fifth Avenue, saying the retailer hasn't paid rent since March 16 and owes about $1.9 million.

Saks told its landlord, Bal Harbour Shops LLC, this month that it couldn’t make lease payments on its three-level retail store due to the effects of the Covid-19 pandemic, according to a lawsuit filed in state court.

But the mall owner said Saks is currently open and was still generating revenue even when non-essential businesses were closed to in-store customers. Bal Harbour said the store generated more revenue in June 2020 than it did in the same month the previous year.

Saks Fifth Avenue, owned by Canadian parent Hudson's Bay Co., is among a broad group of businesses that have been bludgeoned by economic lockdowns and a rapid change of consumer tendencies amid the global pandemic. Nonessential retailers like department stores and fashion-focused chains saw sales plunge precipitously earlier this year during mandatory closures. Nordstrom Inc., for example, reported Tuesday that it had only half of the sales in the second quarter of 2020 that it had a year earlier.

ADVERTISEMENT

In a statement, Saks Fifth Avenue said the owners of Bal Harbour “have not acted in good faith,” unlike “the majority of our landlord partners.”

“Not only have they chosen not to adequately assume their fair share of the damages created by the global health crisis still gripping our nation, they have used the press and legal system to bully tenants,” the company said. “They are upset that Saks Fifth Avenue has not succumbed to their bullying and are continuing to inflict damage to our business and reputation with these actions.”

Overall, the pandemic has accelerated pre-existing trends in retail, such as consumers’ migration to e-commerce. Department stores that have filed for bankruptcy this year include J.C. Penney Cos. and Neiman Marcus Group Inc. Lord & Taylor, a former Hudson’s Bay brand that had been sold to Le Tote Inc., has also started bankruptcy proceedings this year.

Bal Harbour Shops has been considered a well-performing luxury mall with a strong set of high-end tenants, though retail woes were approaching its doorstep even before Covid-19 devastated the industry. Plans to open a Barneys New York store in a new wing were scrapped last year when the retailer went bankrupt and liquidated. Retailers in the Miami metropolitan area depend to a significant degree on tourism, which has slowed dramatically during the pandemic.

By Kim Bhasin and Jonathan Levin. 

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.


Why Esprit’s Ambitious Rebrand Fell Short

The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.


How Adidas Sambas Took Over the World

The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024