Some businesses have attempted to disaffiliate themselves from Former President Donald Trump. Gucci is not among them.
The luxury fashion house recently renegotiated and extended its lease at Trump Tower on Fifth Avenue, the New York Times reported, citing unnamed sources.
In exchange for extending its lease beyond 2026, the retailer received a reduction in rent.
Representatives for Gucci and the Trump Organization declined the Times’ requests for comment.
At the Trump Organization’s 6 East 57th Street, there’s a bigger issue. Tiffany, which took over Nike’s space, is planning to return next year to its Fifth Avenue flagship, which is being renovated. That leaves the Trump Organization with the difficult task of finding a tenant for the 74,000-square-foot space. Wharton Properties and SL Green Realty had taken over the lease but will not renew it.
Amid a pandemic that compounded a slump, brick-and-mortar apparel and luxury retailers are pondering the future of their costly flagships, which have often served more as advertising than as points of sale.
At the same time, a number of businesses are cutting ties with the Trump Organization, among them Cushman & Wakefield, JLL, Deutsche Bank, the Girl Scouts of Greater New York and Signature Bank. The city of New York announced it would cancel its contracts with Trump, although most were about to expire anyway.
[NYT] — Sasha Jones