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Saks Fifth Avenue is striking back at Bal Harbour Shops

Buy Saks Fifth Avenue Gift Cards Saks Fifth Avenue is striking back at Bal Harbour Shops for attempting to evict the luxury retailer over alleged missed rent payments.

According to the suit, filed last week, Saks hasn’t paid its percentage rent, which is derived from the department store’s net sales, for February, March and April. Saks also owes Bal Harbour Shops for 2019 real estate taxes that the national retailer is supposed to pay as additional expenses under its lease, the lawsuit states.

The decision to evict could leave the longtime luxury icon in a delicate position. Bal Harbour’s other anchor, Neiman Marcus, filed for Chapter 11 bankruptcy in May and recently announced it would close its Galleria store in Fort Lauderdale; last week, a Bal Harbour Shops spokesperson told the Herald its store would not be affected. The brick-and-mortar nationwide decline has accelerated this summer as brand after brand has filed for bankruptcy amid the COVID crisis.

Saks’ lawsuit states the department store’s cash flow stopped when the governmental closures went into effect and many of its employees had to be furloughed. Saks and Bal Harbour Shops disagree over the impact the pandemic had on the department store and the amounts owed under the lease agreement, the complaint states.

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