Sunday, April 17, 2005

Pizitz sues Saks over Galleria stores

Michael Tomberlin, The Birmingham News

Pizitz wants Saks Inc. to close its Proffitt's store at Riverchase Galleria and pay money owed on the lease for space now occupied by a McRae's clearance store.

In a Jefferson County Circuit Court lawsuit filed this month, Pizitz said Saks has violated a lease that runs through February 2011 by operating the Proffitt's store too close to the McRae's space. Moreover, it says, the McRae's is not a full-fledged department store, making it also in violation of the lease.

Proffitt's and McRae's are owned by Saks. Pizitz is the landlord of the McRae's space.

The McRae's store has become "a clearance and consolidation check-out center" and Saks has "reduced the amount of operating square footage at McRae's by almost 50 percent and reduced inventory levels by more than 50 percent," the suit claims.

Pizitz seeks unspecified damages for the loss of value and damages at the McRae's space as well as rents based on a percentage of sales at the Proffitt's store. It also wants Saks enjoined from operating the Proffitt's store and the McRae's as a clearance center.

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