Saks Fifth Avenue countersues Bal Harbour Shops after eviction proceedings
Saks Fifth Avenue has filed a lawsuit against Bal Harbour Shops and its CEO, Matthew Whitman Lazenby, claiming the mall broke confidentiality agreements and defamed the upscale chain after filing eviction proceedings in August for $1.9 million in unpaid rent.
The complaint, filed Sept. 1 in Miami-Dade civil court, argues that Lazenby breached a confidentiality contract in the store’s lease by revealing the dollar amount Saks owes in back rent in an interview with Women’s Wear Daily. The store’s rent is determined using a percentage rate of its monthly sales.
The lawsuit also argues that Lazenby made defamatory statements that damaged the chain’s reputation and sales by claiming Saks used the pandemic “as a convenient excuse to evade their financial obligations.”
Saks was forced to temporarily shutter the 120,000-square-foot Bal Harbour location on March 19, 2020, after Miami-Dade ordered the closure of all nonessential businesses to stop the spread of COVID-19.
The complaint says the chain furloughed thousands of its employees around the country during the closure. The Bal Harbour location reopened on May 18 with social distancing precautions in place.
The lawsuit requests a trial by jury to determine punitive damages.
Representatives for Bal Harbour Shops declined to comment for this story.
“We are disappointed that Mr. Lazenby chose to breach our long-standing agreement and disparage Saks Fifth Avenue, an iconic luxury retailer that has been vital to Bal Harbour’s success for 45 years,” said Ian Putnam, president and CEO of HBC Properties and Investments, the real estate operating business of HBC, the holding company of Saks.
“Over the past few months, we have been working with our landlord partners across North America to amicably and logically share the burden of losses stemming from the ongoing global pandemic. Unlike others, this landlord has resorted to providing denigrating statements and confidential information to the media for the sole purpose of coercing Saks into settling a disagreement,” Putnam said in a press release.
“Nonetheless, we have remained eager to reach a fair resolution, just as we have done with other landlord partners. Unfortunately, instead of coming to an agreement, Saks has been forced to grapple with the damage to its business and reputation among customers, associates and partners.”
This story was originally published September 3, 2020 at 10:17 AM.
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