La Perla Faces Eviction, $5.1m Bill Over Unpaid Rent on Asia Flagship
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Italian lingerie label La Perla is facing eviction and further legal action over unpaid rent on its Asian flagship store in Hong Kong, with its landlord seeking upwards of $5.1 million.
The dispute came to light from a writ filed to a Hong Kong court last Thursday by Century Creations Ltd., the landlord of the premises at 22-24 Russell Street in Causeway Bay, against La Perla Far East Ltd. and its financial guarantor S.M.S. Finance S.A.–and despite the brand being given a rent reduction of more than 30 percent last year.
La Perla and its prospective new owner Fosun International had not responded as of press time. Chinese conglomerate Fosun said in December it was to complete an exclusive 30-day due diligence period to buy a majority stake the brand from Italian businessman Silvio Scaglia’s Pacific Global Management, which also owns Elite Model Management.
The boutique is a prominent four-storey location which includes a large LED screen on its facade. At the time of its opening, the 8,000 square foot store was said to the brand’s largest. It was leased commencing Sep. 8, 2015 for five years at the rate of 7.5 million Hong Kong dollars.
Questions & Answers
Q.What is the total amount of money the landlord is seeking from La Perla?
What is the total amount of money the landlord is seeking from La Perla?
The landlord, Century Creations Ltd., is seeking upwards of $5.1 million from La Perla. This sum is related to unpaid rent on the brand's Asian flagship store located in Hong Kong's Causeway Bay.
Q.Which parties are involved in the legal dispute filed by the landlord?
Which parties are involved in the legal dispute filed by the landlord?
Century Creations Ltd. Has filed a writ against La Perla Far East Ltd. And its financial guarantor, S.M.S. Finance S.A. The dispute concerns unpaid rent for the Hong Kong flagship store.
Q.When did the lease for La Perla's Hong Kong flagship store begin and for how long?
When did the lease for La Perla's Hong Kong flagship store begin and for how long?
The lease for the prominent four-storey store on Russell Street commenced on 8th September 2015. It was set for a duration of five years at a monthly rental rate of 7.5 million Hong Kong dollars.
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