Revlon’s financial struggles are spreading beyond the makeup aisle and into the city’s office market.
The bankrupt beauty conglomerate has asked a judge to terminate office and retail leases of its subsidiary Elizabeth Arden at ABS Partners’ Everett Building at 200 Park Avenue South, Crain’s reported.
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Elizabeth Arden, which Revlon acquired for $870 million in 2016, occupies nearly 36,000 square feet of offices at the Union Square building and a 10,000-square-foot, ground-floor retail space — leases which expire in 2027 and 2023, respectively. The retail space, previously an Elizabeth Arden-branded day spa, is permanently closed and available for lease, according to marketing materials.
In court filings, Revlon’s restructuring officer, Robert Caruso, said the lease terminations could save the company $17 million in rent, adding that the rates on the leases are higher than those of “available alternatives,” the publication noted.
Revlon is also hoping to sell the various items and inventory left in the spaces, claiming it would be cheaper than removing them.
The company has $2.3 billion in assets but $3.3 billion in debt on its balance sheet. It’s lost more than $800 million in the last two years.
While Revlon is attempting to get out of its 200 Park Avenue South leases, it doesn’t appear to be ready to bail at its corporate headquarters at Brookfield Properties’ One New York Plaza in the Financial District, where its nearly 108,000-square-foot lease runs through 2030.
[Crain’s] — Holden Walter-Warner