Related Companies is considering extreme measures to save its Hudson Yards retail anchor tenant. The developer’s executives met with Neiman Marcus recently to discuss investing in or even acquiring the struggling retailer.
“Related is panicked that it’ll lose its anchor for the entire project,” one source told the New York Post. “All of the leases at Hudson Yards are subject to a Neiman lease.”
The May 12 meeting, instigated by Related’s Stephen Ross, took place at the offices of Neiman Marcus’ financial advisor Lazard, according to the Post.
Neiman Marcus signed a 250,000-square-foot lease in 2014 to anchor the development’s retail component, but the department store operator has since struggled with declining sales. The Dallas-based company, owned by private equity firm Ares Management and Canada Pension Plan investment Board, has $5 billion in debt and recently said it is considering a sale.
The company held merger talks with the Canadian department store operator Hudson’s Bay, but the Post reported the talks have cooled. [NYP] — Konrad Putzier
(To view more retail leasing transactions from Related Companies, click here)