Taubman Centers sues Saks Fifth Avenue, alleging the department store owes nearly half a million dollars for its space at Mall at University Town Center
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Oct 28, 2020

A major owner of luxury retail properties throughout Florida has sued Saks Fifth Avenue, alleging the department store owes nearly half a million dollars in unpaid rent and other fees at Sarasota's Mall at University Town Center.

Taubman Centers, based in Michigan, filed a lawsuit against Saks in Sarasota County Circuit Court on Oct. 22, asking a judge to rule on whether it can close off the enclosed mall from Saks. Taubman is also demanding unpaid rent and other fees that it says totaled $445,436 as of Oct. 7.

A spokesperson for Saks said in a statement Tuesday that the retailer "looks forward to continuing to serve our customers in Sarasota."

“We are working with our landlord partners across North America to amicably and logically share the losses incurred during this ongoing pandemic," the statement said. "We believe that there are fair solutions to be had regarding this public health crisis. In this instance, we are eager to reach a fair resolution, just as we have done with other landlord partners, but will continue to assert our legal rights."

A spokesperson for Taubman (NYSE: TCO) said the developer does not comment on pending litigation.

According to a notice of default delivered to Saks in September and filed in court documents, the department store began missing payments in April.

Taubman is asking a judge to rule whether Saks' default voids the department store's right to use the common areas of the mall and whether it has any obligation to allow access from the store to the enclosed mall.

Mall at UTC is among the newest malls in the U.S.; Saks was an anchor at the mall when it opened in 2014. The opening of the mall, a $315 million development, drew headlines in the Wall Street Journal and New York Times as the project marched on even as brick-and-mortar retail struggled to compete against e-commerce.

While the pandemic has been difficult for all non-essential and mall-based retail, it's been particularly devastating for department stores like Saks — and in areas like Sarasota, where retailers rely heavily on tourism spending.

Just a year before opening in Sarasota, Saks closed its store at WestShore Plaza in Tampa citing disappointing sales figures. Other than an outlet store in Ellenton, the Sarasota Saks is the Tampa Bay area's only Saks location.