What: Saks had to close its King of Prussia mall store, a prominant location, due to failing to pay the rent.

Why it is important: While Covid is blamed for such difficulties, it shows SFA’s willingness to scale down even if its reputation is at stake

Saks is facing a rental dispute at one of its stores in King of Prussia, a major shopping destination on the East Coast of the United States.

The store's landlord, DDRTC Overlook at King of Prussia, a subsidiary of Ohio-based real estate investment firm Site Centers Corp, has filed a lawsuit against Saks & Co for USD 1.4 million in unpaid rent.

King of Prussia is home to one of the largest shopping malls in the U.S., featuring luxury brands like Gucci and Louis Vuitton. Saks has been leasing a 3,863 square meter space since December 2016 with an annual base rent of approximately USD 1,052 million, excluding additional charges.

The store, which was warned multiple times about the unpaid rent, attempted to terminate its lease that runs until 2025 but was rejected by the landlord. The complaint was filed on June 21, and while the court date is not yet set, the Saks store in question appears to be closed according to Saks' website.

Saks Fifth Avenue closes King of Prussia store for failing to pay the rent