Many large brands, like Victoria’s Secret and the Gap, have kept their high-profile locations closed in Manhattan, while reopening in other states. For four months, the Victoria’s Secret flagship store at Herald Square in Manhattan has been closed and not paying its $937,000 monthly rent. JC Penney and Neiman Marcus, the anchor tenants at two of the largest malls in Manhattan, recently filed for bankruptcy and announced that they would shutter those locations.
Popular chains, like Shake Shack and Chipotle reported their stores in New York were performing worse than others elsewhere, investment analysts said. A few dozen subway locations have closed in New York City in recent months. Le Pain Quotidien has permanently closed several of its 27 stores in the city and plans to leave others closed until more people return to the streets, said Andrew Stern, co-chief executive of the chain’s parent, Aurify Brands.
A Gap store near Rockefeller Center has stayed closed and has not paid its $264,000 monthly rent. Two TGI Friday’s in prime locations, one near Rockefeller Center and another in Times Square, have remained closed while its restaurants elsewhere in the country have reopened.
New York’s stringent lockdown and methodical reopening may have brought the virus to heel, but it is also wreaking havoc on businesses with so few people going to work, virtually no visitors and many residents “a little loath to go out” and worried for their health. Landlords have started filing lawsuits against commercial tenants for not paying rent, accusing some national brands of trying to take advantage of the crisis.
Retail at Hudson Yards was off to a strong start before this crisis hit, and analyst firmly believe that fashion and retail will always remain core to the vibrancy of New York.