Demel Bakery ditches the Plaza, sues Elad

TRD New York /
Feb.February 22, 2010 10:05 AM

The legendary Demel Bakery is planning to walk away from a 10-year lease at The Plaza hotel’s grand concourse and is suing developer Elad Properties for fraud, the Post reported. Demel is claiming that Elad lured the Viennese bakery to the below-ground mall under false pretenses in February 2008 — namely, that the location would put it in the midst of retailers like Harrods, Louis Vuitton and Gucci. Elad, which purchased the famed hotel for $675 million in 2004, has not followed through, according to the suit, filed last week in Manhattan Supreme Court. The basement’s Plaza Retail Collection, part of a $450 million hotel renovation, is now “populated with unknown… retailers or — worse — vacant, unleased space,” the suit claims. Demel, which stopped paying rent to The Plaza in February 2009, is the only restaurant in the 160,000-square foot mall and could leave within weeks, according to sources, and other retailers are threatening to follow. [Post]


Related Articles

arrow_forward_ios
Forever 21 owes these five mall owners $20.9 million, bankruptcy court records show.

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

From left: The El Ad Group's Isaac Tshuva, 108 Leonard Street and the Peebles Organization's Don Peebles (Credit: Delek Group, Google Maps, and Peebles Corporation)

El Ad, Peebles land $450M condo inventory loan for Tribeca’s Clock Tower conversion

10 Madison Square West (Credit: StreetEasy, iStock)

Lawsuit: Pet Smart’s animal excrement is stinking up this $11K-a-month apartment

Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)

These were the top 10 NYC retail leases in July

A Nordstrom store (Credit: Getty Images)

The worst stocks you can buy? Retail. And for many, it isn’t getting better.

From left: Topshop and Topman stores at 478 Broadway, Arcadia Group CEO Philip Green, and Vornado CEO Steven Roth (Credit: Getty Images and Google Maps)

US landlords say Topshop owner is freezing them out amid bankruptcy

Sears CEO Edward Lampert (Credit: Getty Images and iStock)

Bringing the band back together: Eddie Lampert to buy Sears Hometown and Outlet Stores

(Credit: iStock)

Bumble’s going brick-and-mortar

arrow_forward_ios