Vornado sues Planet Hollywood for $6M in missed rent

Problems started at theme restaurant’s Time Square location before pandemic, suit alleges

Planet Hollywood in Times Square and Vornado CEO Steven Roth (Photos via Getty; VNO)
Planet Hollywood in Times Square and Vornado CEO Steven Roth (Photos via Getty; VNO)

The lights have dimmed on Planet Hollywood.

The memorabilia-laden theme restaurant chain is being sued by Vornado Realty Trust for $5.5 million in missed rent at its Times Square location at 1540 Broadway, Crain’s reported.

A lawsuit filed Thursday in state Supreme Court in Manhattan alleges that the restaurant — which has a 10-year lease at the location — has had issues paying rent since December 2018, and the situation has only gotten worse.

Vornado notified the company in July 2019 that it owed about $1.7 million in back rent, according to the report. Planet Hollywood did not dispute the figure but paid Vornado just $250,000, the suit alleges.

The restaurant — which opened in New York in 1991 with celebrity backers like Sylvester Stallone, Arnold Schwarzenegger and Demi Moore — continued to underpay its landlord throughout the rest of the year, and stopped making payments when the pandemic hit in March, the suit alleges.

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Vornado has sued multiple tenants over unpaid rent since the pandemic took hold, including the eatery Dig at 11 Penn Plaza for about $87,000; and U.S. Polo, also at 1540 Broadway, for $1.2 million.

Vornado collected 72 percent of rent from retail tenants in the second quarter, and 93 percent from office tenants, not including deferrals.

[Crain’s] — Sasha Jones

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