Hong Kong Cosmetics retailers Lush and Bonjour sued for unpaid rent

Two Hong Kong cosmetics retailers have fallen victim to the coronavirus crisis facing legal action over unpaid rent.

British-headquartered chain Lush has been sued by its landlord, Shun Cheong Properties Management, for three months of allegedly unpaid rent on its Lockhart Road, Causeway Bay store. Lush signed on the outlet at Shun Hei Causeway Bay Centre in July 2017 at a monthly rate of HK$380,000 (US$49,000). The retailer had received rental relief of $170,000 since February but has not paid for the last three months, owing to a total of $780,000.

Lush opened a new Lush Naked concept store on Great George Street, also in Causeway Bay, last year in addition to a new store inside K11 Musea at Tsim Tsa Tsui. There are now 12 Lush stores in Hong Kong.

Another cosmetics retailer Bonjour Holdings has also been taken to court by its landlord Giant Manor Investment Limited, allegedly owing six months rent and management fees for its Nathan Road, Mong Kok, store.

The Hong Kong cosmetics retailer had signed a lease agreement for three years in September 2017 at a monthly rent of $1.28 million and now allegedly owes a total of $7.8 million in rent, plus $100,000 in interest.

Bonjour recently reported an 18.7-per-cent sales to decline for last year, citing falling numbers of inbound Mainland Chinese visitors in the wake of protests.