The Real Deal Miami

Canyon Ranch behind on paying employees since sale, buyer says

Z Capital closed on $21.6M sale in January, renamed property Carillon Hotel & Spa

February 20, 2015 02:15PM
By Katherine Kallergis

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Carillon Hotel and Spa, and Z Capital CEO James J. Zenni

Carillon Hotel and Spa, and Z Capital CEO James J. Zenni

Carillon Hotel & Spa employees still haven’t been paid for their paid time off, according to a letter obtained by The Real Deal.

Z Capital’s Thomas Wicky addressed Carillon employees in the letter, saying, “We are very disappointed that Canyon Ranch has still not paid outstanding PTO balances. We understand that under Canyon Ranch’s employee policies, they were to pay vested PTO balances in cash following that termination …. We believe that Canyon Ranch’s lack of payment is unfortunate and improper. As we have told hotel management, we will help pursue this issue and are pushing the responsible parties to pay you now.”

Sheryl Press, Canyon Ranch’s public relations director, said that Canyon Ranch is working to resolve “all remaining issues resulting from the owners’ bankruptcy and sale” of the property.

“It is intended that every former employee of Canyon Ranch Hotel & Spa in Miami Beach will receive their full, earned PTO benefits. We have been working closely with the former owners of the property, affiliates of Lehman Brothers, to determine this amount,” she said in a statement. “As the property owners, the Lehman Brothers affiliates paid all salaries and benefits for the employees of Canyon Ranch Hotel & Spa. CR Miami LLC managed the property under a contract with those Lehman affiliates.”

Z Capital won bankruptcy court approval in New York in November 2014 to take over the former Canyon Ranch site at 6801 Collins Avenue in Miami Beach — including the right to run hotel operations. Z Capital Partners bid $21.6 million in August 2014, and took control over the hotel’s 13 unsold units, the hotel’s common area, spa, pools, retail spaces and gym. The sale closed on Jan. 14. The property is now called Carillon Resort & Spa.

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