Valentino sues to close Fifth Avenue store

Valentino is suing the landlord of its Fifth Avenue store in an attempt to terminate their lease. Valentino says that the FIfth Avenue location is no longer prime retail space due to the coronavirus pandemic. In March when New York City went on lockdown, Valentino's four-story flagship store closed like all non-essential businesses.

During the protests over the murder of George Floyd in New York, Valentino temporarily boarded up the store as looters were robbing retail stores in the late hours of the night. Since then, the boards have been taken down and Valentino returned for curbside pick-up as part of New York's phase-one reopening plan. As of today, the store is allowed to have customers for in-store shopping as part of phase-two reopening.

Valentino's lawsuit with Savitt Partners LLC, the landlord in question, would allow Valentino to get out of its current 16-year lease nine years early. The current flagship store is in close proximity to Bergdorf Goodman and Saks Fifth Avenue, and it's typically known for high retail traffic, especially from tourists. However, with a severe decrease in global travellers and tourists, the foot traffic in the area has died down.

Part of the lease states Valentino would get to use a space "consistent with the luxury, prestigious, high-quality reputation of the immediate Fifth Avenue neighborhood." The lawyer for Valentino said due to the COVID-19 Pandemic, Valentino's business there is no longer feasible.

Lawsuits over rent are becoming quite common as coronavirus continues to impact business. Victoria's Secret recently filed a lawsuit to get out of their lease on their Herald Square Store. Gap Inc. and the NBA have also been sued over unpaid rent on their New York stores. While many of these lawsuits are still in their early proceedings, it has yet to be determined whether these outcomes will favor the tenants or the landlords.

photo: via Valentino.com