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Tenant Stopped Paying Rent In Early March; Mall Settles With Bed, Bath & Beyond
EklecCo New Co LLC, the company that owns The Palisades Center, has sued the LLC that operates Solstice Sunglass Boutique and its guarantors for nonpayment of rent for the past ten months.
Solstice Sunglasses, a luxury sunglasses boutique carrying an assortment of designer, contemporary and sport sunglasses for women, men, and children, has been in the mall since 2004 on the ground floor located near the former Bed Bath & Beyond store.
The company owes $90,980 through December. The company’s lease runs through Jan. 31, 2021.
It is unclear whether there will be a renewed lease.
In the suit, filed Dec. 21, EklecCo claims the tenant hasn’t paid rent since March 1st, prior to the pandemic shutdown.
Solstice Sunglass Boutique, with more than 70 locations nationwide, was operated by Solstice Marketing Concepts, LLC, a New York-based company. The LLC was a subsidiary of the Safilo Group, an Italian eyewear manufacturer and distributor. Safilo in 2019 sold the LLC for $9 million to Fairway LLC, an American investment fund.
Solstice is the second-largest retailer of sunglasses in the U.S. with locations in outlet centers and malls, including The Westchester.
The suit alleges that the lease was assigned to Fairway LLC, but the conditions of the assignment required Solstice Marketing Concepts, the original tenant, and Safilo to remain liable for the remaining lease obligations.
The suit also sues Fairway LLC as an assignee under the lease.
Bed, Bath, Beyond Suit Settled
In late August, EklecCo sued Bed Bath & Beyond in Rockland County Supreme Court on for more than $500,000 in back rent. On Dec. 10th, EklecCo dismissed the suit, after the two parties settled in an undisclosed arrangement.
Bed Bath & Beyond, which has shuttered its mall location, had been a tenant in The Palisades Center since 1995. In April, the tenant paid only $21,660 and from April 4 through June 30th, Bed Bath & Beyond stopped paying rent altogether. On July 2, Bed Bath & Beyond paid a partial payment of $12,373. The mall reopened on July 10th.
As of July 31, the tenant owed $413,003. At that time, The Palisades Center sent a notice of final default and threatened legal action. On August 20, the mall owner filed suit, claiming a breach of contract and demanding damages.