Ralph Lauren still paying $70K a day for shuttered Fifth Ave. flagship

Struggling retailer closed shop last week

New York /
Apr.April 21, 2017 10:00 AM

It’s been nearly a week since retailer Ralph Lauren abruptly shuttered its Fifth Avenue flagship — but the struggling fashion house is still paying nearly $70,000 a day in rent.

Not only has another tenant not stepped in to claim the space, but the owner of the property at 711 Fifth Avenue hasn’t yet hired a broker to market the 39,000-square-foot retail block.

Ralph Lauren stunned observers when it said it would close the store earlier this month. “I don’t recall any company pulling out of a location with a long-term lease after such a short time on Fifth Avenue,” Tom Cusick, president of the Fifth Avenue Business Improvement District, told the New York Post.

Ralph Lauren signed a $400 million, 16-year lease for the flagship store in 2013 in a deal that worked out to $25 million in average rent a year or $68,493 per day.

“That gives you a good indication of how poorly they were doing at that location that they are paying rent there on an empty space,” one source told the New York Post.

The building is owned by the Coca-Cola Co. CBRE’s TRData LogoTINY Richard Hodos orchestrated the lease to Ralph Lauren, earning REBNY’s Retail Deal of the Year Award.

Ralph Lauren’s former CEO Stefan Larsson, who quit in February, had been implementing a $140 million cost-savings plan for the struggling company, which included closing stores, selling off smaller labels and cutting back on discounts. [NYP]E.B. Solomont


Related Articles

arrow_forward_ios
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
These were the top 10 NYC retail leases in July
Ricky's at 830 Broadway (Credit: NYC Go)
Ricky’s, iconic NYC beauty shop, faces
more closures
Ricky’s, iconic NYC beauty shop, faces
more closures
From top, clockwise: Cushman & Wakefield's Joanne Podell, Showfields' Amir Zwickel, Appear Here's Josh Yentob, Brookfield Properties's Mark Kostic (Credit: Getty, LinkedIn)
When it comes to retail, “real estate in New York is fundamentally broken”
When it comes to retail, “real estate in New York is fundamentally broken”
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
(iStock)
Job recovery sputters, but hospitality & leisure add hiring
Job recovery sputters, but hospitality & leisure add hiring
Cushman & Wakefield CEO Brett White (Cushman)
Cushman eyeing M&A opportunities post-pandemic
Cushman eyeing M&A opportunities post-pandemic
Andrew Yang (Getty, iStock)
Yang targets vacant lots with $900 million tax plan
Yang targets vacant lots with $900 million tax plan
Ron Burkle and Andrew Zobler with The NoMad New York. (Google Maps, Getty)
NoMad Hotel heads back to the auction block
NoMad Hotel heads back to the auction block
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...