The developer of the Limelight Marketplace is cutting his losses one year after opening the boutique indoor mall in a former Chelsea church-turned-nightclub and is now planning to spend another $4 million to re-convert the space into a single department store. According to the Wall Street Journal, Limelight operator Jack Menashe has already begun vacating many of the small retailers that moved in at the landmarked 30,000-square-foot Sixth Avenue venue, to much fanfare, in May 2010. But since its launch, the Limelight has struggled to retain tenants and maintain foot traffic levels, which Menashe blamed on a “lack of size to really execute it properly.” The new concept will be “not unlike Barney’s,” said Menashe, who has hired a merchandise buyer but will operate the tri-level store himself when it relaunches in September. [more]

Chelsea’s Limelight Marketplace — the church-turned-nightclub-turned-retail mall on Sixth Avenue and 20th Street — debuted to much fanfare less than a year ago but has already begun to shed tenants. According to Crain’s, foot traffic has plummeted since the initial hype surrounding the property’s $15 million conversion, and now there are grumblings of poor management amongst the vendors that remain. Tenants at the 30,000-square-foot venue are mostly small businesses for whom this is their first retail location. Alongside them were more established brands, like LeSportsac and Hunter Boots, both of which have since ditched their spots there. Grimaldi’s, the popular Brooklyn-based pizzeria, didn’t open at the Limelight until February, by which time things had already started to go downhill. [more]

(Updated: 12:58 p.m.) The new brightly lit Limelight Marketplace is a great departure from the notorious nightclub with a very dark past. While the exterior of the building and detailed stained glass windows remain, the 163-year-old Episcopal church-turned Limelight nightclub has been transformed into a trendy shopping emporium and given a new name: Limelight Marketplace. The 25,000-square-foot building, at 656 Sixth Avenue and 20th Street, has two full stories and a multi-level maze of 60 little shops on the perimeter of a hollowed out space. The retailers offer a small portion of their inventory in spaces
ranging from 100 to 700 square feet, according to a spokesperson for the
marketplace, giving them a pop-up shop feel. And in a way they are,
with leases ranging from six months to a year. Stars from “The Real Housewives of New York City” were on hand at the grand opening cocktail party last night. “It’s absolutely beautiful,” said “Housewife” Jill Zarin, co-owner of Zarin Fabrics. “It’s a great place to come gift shopping.”
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Renderings of the Limelight Marketplace

The famous 1990s nightclub Limelight is getting a rebirth as a nifty retail experiment and it’s proving successful, with 75 percent of the available 60 shop spaces leased, according to the project’s marketing director. Established retailers that have already signed on are Caswell Massey, America’s oldest retailer (they made George Washington’s cologne), and Hunter Boots, the 150-year-old firm that supplies boots to England’s Royal Family. New York newcomers include Mari’s New York — Mari Tuttle was a chef at Balthazar’s, and this is her artisanal brownie business — It’s Sugar, a candy store created by Jeff Rubin, co-creator of Dylan’s Candy Bar, Carter & Cavero Old World Olive Oil, and Silly Souls, a baby goods store. They’re also negotiating to bring in four restaurants. Note: Correction appended. In February, retail developer Jack Menashe, creator of the successful chain store Bang Bang, leased the deconsecrated, early Victorian-age church and started renovations for what he calls “the next generation in retail.” Note: Correction appended.
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