Perch, the San Diego County-based kitchen and bath retailer that ceased operations last week, is facing a lawsuit from multiple parties claiming the luxury retailer owes more than $5 million in unpaid rent and inventory. is being woken up.
In court filings this week, two landlords say Perch has failed to maintain rent payments of about $100,000 a month at its Oceanside distribution center and spacious Westfield UTC showroom, and owes about $850,000 in back rent. He said that he owed A third lawsuit filed Monday by luxury refrigerator maker Sub-Zero alleges Pilch is owed $4.22 million. Additionally, Pilch was the subject of eviction by his landlord in Los Angeles County, according to a complaint filed in December in Los Angeles County.
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The luxury kitchen and bath retailer, which has made improved customer service a key part of its brand, abruptly closed its doors on March 20, warning shoppers through a statement on its website and signs posted on showroom doors. It said it was “temporarily” closed. Employees were notified in an 81-word email sent the same day.
A week later, there are still no signs of business reopening, and customers say their requests for refunds or clarification on order fulfillment have not been met. Our store remains closed. Employees who were employed by Pirch as of last week updated their social media profiles to indicate they were either looking for work or no longer with Pirch. The LinkedIn profile of Steve Smith, the company's president and CEO, is currently inaccessible.
Gene Hodges, Perch's head of marketing and corporate communications, confirmed in an email Thursday that the company's retail stores remain closed.
“Our showrooms and warehouses are still closed. Reopening plans have not yet been announced. We will share information with you as it becomes available,” he wrote.
Unpaid inventory, rental balance
The company's past-due accounts go back at least several months, according to court filings.
The lawsuit and eviction petition allege Pilch stopped paying her and was not transparent about her finances.
According to Sub-Zero's complaint, Pilch defaulted on its credit agreement on or about January 20 by failing to pay for a total of $4.22 million in delivered inventory. This figure excludes the 1.5% monthly interest rate, late fees, and other fees. The complaint includes Pilch's 2019 credit application and names its parent company, private equity firm L. Catterton.
“Within the past four years, Pilch became indebted to Sub-Zero on an open book account for inventory sold and delivered to Pilch at Pilch's specific claims and requests,” the complaint states. has been done.
At Westfield UTC, Pirch sold high-end kitchen and bath equipment complemented by designer services in a 23,747-square-foot showroom he rented for $96,597 per month.
The eviction lawsuit, filed Feb. 29, about three weeks before the store closed, said Partch was behind on rent and owed more than $500,000. On February 9th and March 6th, Pilch received notices giving him 10 days to pay or move out. The store remained open and the unpaid rent amounted to $748,626, but the company paid a portion of the $100,000 amount on Monday, according to court filings.
According to the complaint, this leaves Pilch's rent owed to UTC's landlord at $648,626, with future rent prorated at $3,176 per day until he vacates.
Perch failed to pay about $10,000 in rent, fees and late fees in February and March, according to an eviction complaint filed Tuesday by the landlord of the Oceanside store at 1322 Rocky Point Drive in Unit A. It is said that Total: $191,998.
Its landlord, East Group Properties, gave Pilch three days' notice to vacate the 67,913-square-foot property on March 20. Landlord,” the notice said.
That night, the company's human resources director sent an email to employees informing them that operations would be suspended.
