Neiman Marcus is closing its Hudson Yards store after only 16 months in Manhattan, as part of a plan to close four stores for its bankruptcy reorganization.
The store closure comes as a serious blow to the $25billion Hudson Yards development by Related and Oxford Properties, first reported the Dallas Morning News.
Related has already started marketing the Lower West Side space for prospective office tenants who want to take on the potentially rewarding space.
Two stores in Florida – one in Fort Lauderdale and the other in Palm Beach – and a Bellevue, Washington, location are the other stores closing.
‘We have carefully analyzed all of the changes that have occurred in the retail environment as a result of COVID-19,’ Neiman Marcus vice president, Amber Seikaly, said in a statement. ‘Customers are and will continue to shop differently than they did prior to the pandemic.’
‘A physical location in Hudson Yards is no longer an ideal space for us given the preponderance of restaurants and future office space in that mall.’
Seikaly added that the retailer was ‘purposefully focusing on the unique relationships we already have with our loyal luxury customers at Bergdorf Goodman, and we will continue to serve our Neiman Marcus customers through our digital selling channel and our other tristate-area Neiman Marcus stores.’
Related is said to have covered costs for the retailers to build the 190,000 square-foot store, agreeing to a special deal where Neiman would pay a portion of its sales in exchange for rent.
The store served an an anchor tenant for the new mall, which has been hit hard by loss of tourist due to the coronavirus.
Neiman Marcus began Chapter 11 bankruptcy protection in May. At the time, CEO Geoffroy van Raemdonck said that the pandemic had put ‘inexorable pressure’ on the business.
Related said that it was ‘unfortunate that Neiman Marcus was unable to achieve the success that other retailers have found at Hudson Yards,’ adding that, ‘This opens up a great opportunity to create incredibly attractive office space with the largest floor plates available in New York City, a private ground floor entrance, and 18 foot high ceilings,’ the Real Deal reports.
A marketing document obtained by the Real Deal shows that the three floor space is being offered as a ‘campus for innovation at the heart of NYC’s most exciting new neighborhood.’