Vornado sues Planet Hollywood for $6M in missed rent
Problems started at theme restaurant’s Time Square location before pandemic, suit alleges
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.
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