Eviction for La Perla Hong Kong?
La Perla Hong Kong faces eviction from its Causeway Bay flagship store after the landlord claims the Italian luxury lingerie brand failed to pay HK$9.2 million (US$1.18 million) in rent despite repeated demands.
In a writ filed with the High Court, the solicitor for Century Creations claims La Perla Far East failed to pay rent for two months on the five-storey store. The company was also late paying December’s rent, says the landlord.
La Perla’s financial guarantor, SMS Finance, was asked to pay a $31 million deposit in light of the retailer allegedly not observing its obligations.
With four branches in Hong Kong, the brand took up residence in the 8000sqft (740sqm) Causeway Bay store in January 2016 following a tenancy agreement with Century Creations signed on November 8, 2014. It was agreed La Perla would pay a monthly rent of $7.5 million over a five-year term from September 2015 to September 2020. The two parties later agreed to a reduced monthly rent of $5 million from April 2017 to April 2018.
However, La Perla allegedly defaulted on the rent for December and January, despite being given a debit note and reminders from the landlord’s agent, Emperor Property Management. Only after the landlord’s solicitor wrote to La Perla did the company pay the December rent, the writ says. But last month’s rent has yet to be paid and the landlord claims there has been no payment for this month either up until taking legal action.
“By the issue and service of the proceedings herein, the lease as held by La Perla Far East is hereby forfeited,” says the writ.
The landlord is now demanding vacant possession of the premises plus $9.21 million in rent on top of a deposit, government rates, interest and damages for defaulted payments.