October 6, 2008 --
THE recession has hit Miami with a resounding thump. The "sixth borough" was already feeling the effects of the housing slump with many of its luxury condo developments standing empty. Now, the financial panic has hit the hotels. Sources say the much anticipated Canyon Ranch Spa - which was to be housed inside Ian Schrager's new South Beach hotel, the Riande - has stalled. "It was financed by Lehman," a spy said. "This is a really bad thing for Miami. It's a very celeb-friendly spa and would've helped tremendously." In addition, many investors who put down payments on condos in the SoBe area are "backing out." The recession is even hitting the hairdressers. Legendary tress dresser Oribe "isn't giving his 25 percent-off, industry discount anymore because staff say business has been awful." Reps for Schrager and Oribe didn't return e-mails.
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