Is Syms Fifth Avenue store no more?

October 20, 2011 12:26PM

Secaucus, N.J.-based Syms, owner of clothing retailer Filene’s Basement, may be pulling out of plans to lease 34,000 square feet at Crown Acquisitions’ 530 Fifth Avenue because of cash flow problems, Crain’s reported.

The retailer inked a deal for the space last summer, and was scheduled to open in the building, between 44th and 45th streets, this fall, alongside other newcomers like Urban Outfitters, Joe Fresh and Guess. The deal was brokered by Lansco.

“It’s a large space and a challenge, but it’s a Fifth Avenue presence,” said Faith Hope Consolo, chairman of retail leasing at Prudential Douglas Elliman, who was not involved in the deal. “The corridor is ripe for discount or affordable fashion,” she noted, adding that Syms has “more headaches than you know.”

Syms, which purchased Filene’s out of bankruptcy for $62 million in 2009, may be in some financial trouble, sources told Crains. Store sales were down by 15 percent to $86.3 million for the quarter ending Aug. 27.

Ground-floor rents around 530 Fifth Avenue average around $595 per square foot, Crain’s said. [Crain’s]