Bed Bath & Beyond will permanently close UES store

In total, home-goods chain is closing 6 locations in New York and 63 nationally

TRD New York /
Sep.September 23, 2020 03:05 PM
CEO Mark Tritton and 410 East 61st Street (Getty, Google Maps)

CEO Mark Tritton and 410 East 61st Street (Getty, Google Maps)

Home-goods retailer Bed Bath & Beyond will close its Upper East Side location at 410 East 61st Street in December, according to a notice filed with the New York State Department of Labor.

The Manhattan store is one of 63 nationwide expected to close by the end of the year, with six of those located in New York. In July, the company announced it would close 200 stores over the next two years.

The chain anticipates that 79 employees will lose their jobs when the 61st Street location closes, according to the DOL notice. Company representatives did not immediately respond to a request for comment.

Jeff Mooallem, president and CEO of Gazit Horizons, the landlord of 410 East 61st Street, said the company has a lead on a new commercial tenant and that he is hopeful about announcing an agreement in the next 30 days.

The pandemic has left many traditional retailers, who were already under pressure from the e-commerce boom, facing difficult choices. Bed Bath & Beyond’s strategy of inundating shoppers with coupons and stocking its stores with a wide variety of goods was already becoming outdated, thanks to competition from online retailers like Amazon.

Prior to the onset of the pandemic, Bed Bath & Beyond announced it would sell about half of its real estate to a private equity firm and then lease back the space, a deal expected to earn the company more than $250 million.

The retailer sold 2.1 million square feet of space to Oak Street Real Estate Capital — including its headquarters in Union Township, New Jersey — and in February, new CEO Mark Tritton announced plans to invest $1 billion on upgrading its stores and lease buybacks.

But the pandemic changed things. In May, the company paid no rent at any of its locations. In June, it paid at almost 39 percent of them, according to the latest Datex Property Solutions report on national retail chains.






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”
An aerial view of a pop-up drive-in theater built in the parking lot at the Broadway Commons in Hicksville, New York (Getty)

Covid pummeled shopping centers, but their parking lots are thriving

Covid pummeled shopping centers, but their parking lots are thriving
20 West 33rd Street (20West33rd)

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
Bank OZK CEO George Gleason (Unsplash; Bank OZK)

Bank OZK’s lending up in third quarter

Bank OZK’s lending up in third quarter
Gap CEO Sonia Syngal (Getty)

Gap Inc. will close 350 stores and exit malls entirely

Gap Inc. will close 350 stores and exit malls entirely
Steve Cohen and Citi Field (Getty)

Citi Field lease clause could stymie billionaire’s quest for the Mets

Citi Field lease clause could stymie billionaire’s quest for the Mets
arrow_forward_ios

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

Loading...