Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Valentino is sued for $207 million after shutting Manhattan boutique over pandemic

Published 02/19/2021, 01:33 PM
Updated 02/19/2021, 06:30 PM
© Reuters. Designer Valentino shoes are seen on display at the Nordstrom flagship store is seen during a media preview in New York

© Reuters. Designer Valentino shoes are seen on display at the Nordstrom flagship store is seen during a media preview in New York

By Jonathan Stempel

NEW YORK (Reuters) - Valentino SpA was sued on Friday for $207.1 million by the landlord of its former American flagship on Manhattan's Fifth Avenue, which said the Italian fashion company had no right to break its lease and leave the store in disrepair.

The complaint followed a judge's Jan. 27 dismissal of Valentino's own lawsuit seeking to void its 16-year lease because the coronavirus pandemic had made operating the store, two blocks south of Trump Tower, impossible.

According to the landlord, 693 Fifth Owner LLC, Valentino owes all rent due through the lease's July 2029 expiration despite abandoning the store in December.

Valentino must also pay $12.9 million to repair store damage, including to Venetian Terrazzo marble panels now defaced with paint and holes, the landlord said.

Neither Valentino nor its lawyers immediately responded to requests for comment. The lawsuit was filed in Manhattan Supreme Court, a New York state court.

In seeking to end its lease, Valentino said the pandemic left it unable to operate the store "consistent with the luxury, prestigious, high-quality reputation" of its neighborhood.

But in dismissing Valentino's lawsuit, Justice Andrew Borrok of the Manhattan court said the lease gave the landlord broad protections from nonpayment of rent.

"The fact that the COVID 19 pandemic was not specifically enumerated by the parties does not change the result," he wrote.

Valentino is appealing Borrok's decision.

Manhattan retailers have struggled during the pandemic with reduced traffic from tourists and office workers, and early forced store closures.

Last month, the Real Estate Board of New York said rents sought for Manhattan retail space fell throughout the borough, including an 8% drop in the stretch including Valentino's store.

"The building owner tried to work with Valentino during the pandemic with the understanding that these are difficult times," the landlord's lawyer Robert Cyruli said. "We look forward to presenting our case for damages in court."

© Reuters. Designer Valentino shoes are seen on display at the Nordstrom flagship store is seen during a media preview in New York

(This story adds dropped word in first paragraph)

Latest comments

NY stayed alone not more luxury there
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.